Test Bank for Enterprise Systems for Management, 2e (Motiwalla/Thompson)

Test Bank for Enterprise Systems for Management,

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Enterprise Systems for Management, 2e (Motiwalla/Thompson)
Chapter 5 Implementation Strategies

1) One of the good things about ERP systems is that they don't require much in the way of
hardware to run them.
Answer: FALSE
Diff: 2 Page Ref: 141

2) To run ERP software, high-end multi-processor servers are usually needed.

Answer: TRUE
Diff: 2 Page Ref: 141

3) The current generation of ERP systems uses thick clients to access the software.
Answer: FALSE
Diff: 3 Page Ref: 142

4) Because they are self-contained and have embedded processes, EP systems do not require
extra long-term storage devices.
Answer: FALSE
Diff: 3 Page Ref: 142

5) ERP systems work on all operating systems except Linux.

Answer: FALSE
Diff: 2 Page Ref: 142

6) Reliable multi-user DBMSs are also required when implementing an ERP system.
Answer: TRUE
Diff: 1 Page Ref: 142

7) Because they are such strong competitors, SAP ERP software will not run on Oracle's DBMS.
Answer: FALSE
Diff: 2 Page Ref: 142

8) Most ERP systems today can work with a variety of DBMSs.

Answer: TRUE
Diff: 1 Page Ref: 143

9) Project management software is required for an ERP implementation.

Answer: FALSE
Diff: 2 Page Ref: 143

10) Security software is not necessary in ERP systems.

Answer: FALSE
Diff: 1 Page Ref: 143

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11) An employee or client may be an end-user of an ERP system.
Answer: TRUE
Diff: 1 Page Ref: 143

12) A database administrator is an example of an IT specialist who might be a member of the

ERP implementation team.
Answer: TRUE
Diff: 2 Page Ref: 143

13) The change management team determines the gaps between the ERP functionality and the
business process requirements.
Answer: FALSE
Diff: 3 Page Ref: 143

14) The QA team customizes the ERP system functionality.

Answer: FALSE
Diff: 3 Page Ref: 144

15) When functionality is missing from an ERP package, sometimes it can be provided by using
a third party product.
Answer: TRUE
Diff: 2 Page Ref: 144

16) Integration is the sharing of data and data elements directly with the ERP system.
Answer: TRUE
Diff: 2 Page Ref: 149

17) Sometimes when two software products are integrated, the vendors will only allow specially
qualified IT personnel to make changes to them such as installing an upgrade.
Answer: TRUE
Diff: 3 Page Ref: 149

18) In general, interfaces should be two-way.

Answer: FALSE
Diff: 3 Page Ref: 149

19) Vendors will often give their software partners an early release of any new products or
upgrades so the partner has a chance to change their product to work with the new release.
Answer: TRUE
Diff: 2 Page Ref: 148

20) Integrating other systems is a major problem for ERP systems.

Answer: TRUE
Diff: 1 Page Ref: 149

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21) The problem with relational databases is that they are hard to connect to ERP systems.
Answer: FALSE
Diff: 2 Page Ref: 149

22) In order to execute transactions, the ERP system must retrieve and summarize large amounts
of data.
Answer: FALSE
Diff: 3 Page Ref: 149

23) Processing transactions and generating reports do not work well with a single database
instance.
Answer: TRUE
Diff: 3 Page Ref: 149

24) Most database packages can be used to support large ERP system implementations.
Answer: FALSE
Diff: 1 Page Ref: 149

25) ERP project management is considered to be a component of ERP governance.

Answer: TRUE
Diff: 2 Page Ref: 150

26) In an ERP system implementation, staff should outline and define committees and
workgroups that are responsible for different components of the implementation.
Answer: FALSE
Diff: 2 Page Ref: 150

27) It is crucial that the governance structure be bypassed by all involved before the ERP project
begins.
Answer: FALSE
Diff: 2 Page Ref: 150

28) Governance helps define the processes and underlying accountabilities that guide the
management of the ERP project.
Answer: TRUE
Diff: 3 Page Ref: 151

29) The Project software oversees all project activities and makes sure that the project stays
within its scope.
Answer: FALSE
Diff: 2 Page Ref: 152

30) In terms of governance, senior management are the owners of the ERP project.
Answer: TRUE
Diff: 2 Page Ref: 151

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31) The person who is ultimately responsible for the success of the ERP implementation is the
consultant.
Answer: FALSE
Diff: 2 Page Ref: 151

32) The Change Management team is typically a part of the larger project team.
Answer: TRUE
Diff: 2 Page Ref: 152

33) One key to a successful ERP implementation is to have a well-defined and proven
methodology.
Answer: TRUE
Diff: 3 Page Ref: 154

34) A project methodology should address all the components of the project from project startup
through system planning.
Answer: FALSE
Diff: 3 Page Ref: 155

35) If a company chooses a "vanilla" ERP implementation, they will have to change their own
business practices to fit the software.
Answer: TRUE
Diff: 3 Page Ref: 155

36) A single ERP system cycle is easier to maintain and support.

Answer: FALSE
Diff: 3 Page Ref: 155

37) ERP implementations with a lot of customization may require extensive maintenance when
the system is upgraded.
Answer: TRUE
Diff: 3 Page Ref: 155

38) When an ERP system is upgraded, often bugs and problems are associated with the:
A) applications.
B) databases.
C) modules.
D) modified code.
Answer: D
Diff: 3 Page Ref: 156

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39) The decision to modify or not modify an ERP system is critical and should be done
________ of the implementation.
A) at the beginning
B) throughout
C) in the design phase
D) in the maintenance phase
Answer: A
Diff: 3 Page Ref: 156

40) ________ is not typically a reason for implementing an ERP system.

A) Replacing legacy systems
B) Improving services
C) Increasing costs
D) Increasing profit margins
Answer: C
Diff: 2 Page Ref: 156

41) Most new ERP systems are ________ which provides flexible access to the applications.
A) single instances
B) web-based
C) scalable
D) network-based
Answer: B
Diff: 2 Page Ref: 157

42) The infrastructure behind an ERP system must be planned with the idea that it will probably
have to be ________ as the system matures.
A) decommissioned
B) archived
C) expanded
D) processed
E) integrated
Answer: C
Diff: 2 Page Ref: 158

43) For their ERP implementations, some businesses ________ the server and the database
environment.
A) develop
B) outsource
C) use
D) offshore
Answer: B
Diff: 2 Page Ref: 158

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44) In order to ensure that their desktop PCs are secure, businesses often develop ________ PC
configurations for users.
A) advanced
B) in-house
C) embedded
D) standard
Answer: D
Diff: 3 Page Ref: 158

45) Security ________ is critical to any systems reliability and integrity.

A) designing
B) purchasing
C) managing
D) awareness
E) configuration
Answer: D
Diff: 2 Page Ref: 158

46) Hurricane Katrina made it clear how important disaster ________ is today for every ERP
implementation.
A) problem-solving
B) infrastructure
C) planning
D) management
Answer: C
Diff: 2 Page Ref: 158

47) When planning for disasters, it is important to first identify those systems that are:
A) outsourced.
B) legacy systems.
C) highly technical.
D) mission critical.
Answer: D
Diff: 2 Page Ref: 158

48) An ERP system needs a powerful set of ________ for development, testing and its
production environments.
A) protocols
B) consultants
C) servers
D) vendors
Answer: C
Diff: 2 Page Ref: 141

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49) The hardware resources needed for an ERP system include servers, clients, and:
A) peripherals.
B) memory.
C) software.
D) browsers.
E) wireless routers.
Answer: A
Diff: 3 Page Ref: 141

50) The key software resources for ERP systems include ________, database management
systems, and applications.
A) maintenance software
B) project management software
C) system software
D) browsers
Answer: C
Diff: 3 Page Ref: 142

51) Application software is the programs or ________ that help in the development, monitoring,
and integration of ERP software.
A) legacy systems
B) utility software
C) databases
D) system software
Answer: B
Diff: 3 Page Ref: 143

52) Database administrators and IT operations support personnel are examples of:
A) end-users.
B) design team members.
C) IT executives.
D) IT specialists.
Answer: D
Diff: 2 Page Ref: 143

53) The success or failure of an ERP implementation is ultimately in the hands of the:
A) end-users.
B) design team members.
C) IT executives.
D) IT specialists.
Answer: A
Diff: 2 Page Ref: 143

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54) The ________ has to put together a good project team and work with top management to get
support and resources for the project.
A) Steering Committee
B) project manager
C) IT executive
D) IT specialist
Answer: B
Diff: 3 Page Ref: 144

55) The ________ team determines the gaps between the ERP functionality and the business
process requirements.
A) functional
B) change management
C) development
D) data migration
Answer: A
Diff: 3 Page Ref: 144

56) The ________ team customizes the systems functionality.

A) functional
B) change management
C) development
D) data migration
Answer: C
Diff: 2 Page Ref: 144

57) The ________ team works with end-user training, communications and support activities.
A) functional
B) change management
C) development
D) data migration
Answer: B
Diff: 2 Page Ref: 144

58) ________ are add-on software components to either make the system operational or add
missing functionality not offered by the ERP system.
A) Applications
B) Web sites
C) E-business components
D) Third party products
Answer: D
Diff: 2 Page Ref: 149

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59) A(n) ________ is a process by which data or data tables are copied or updated to and/or from
the ERP system.
A) methodology
B) protocol
C) interface
D) integration
E) data migration
Answer: C
Diff: 3 Page Ref: 149

60) The downside of using an interface for integration is that the data will not be as ________ as
it would be if it were integrated more directly.
A) accurate
B) timely
C) economical
D) valuable
Answer: B
Diff: 2 Page Ref: 149

61) The recent development of ________ is an attempt to solve the interfacing and integration
problems associated with ERP systems.
A) operating systems
B) bolt-ons
C) project management tools
D) middleware
E) AI tools
Answer: D
Diff: 3 Page Ref: 149

62) ERP systems are initially set up to support ________ as opposed to supporting the reporting
component.
A) decision-making
B) planning
C) transactional components
D) marketing
E) project management
Answer: C
Diff: 3 Page Ref: 149

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63) The ________ Committee will oversee the project's efforts and ensure appropriate
leadership.
A) Executive
B) Steering
C) Governance
D) ERP
E) none of the above
Answer: B
Diff: 3 Page Ref: 152

64) The ________ is/are responsible for resolving functional issues raised to the Steering
Committee.
A) application steward
B) project manager
C) project executives
D) steering committee
E) none of the above
Answer: A
Diff: 3 Page Ref: 152

65) The ________ is/are in charge of managing the day-to-day aspects of the ERP project.
A) application steward
B) project manager
C) project executives
D) steering committee
E) none of the above
Answer: B
Diff: 2 Page Ref: 152

66) Project team members provide direction and ERP application knowledge with respect to
business ________ design and configuration.
A) hardware
B) software
C) process
D) data
E) none of the above
Answer: A
Diff: 3 Page Ref: 152

67) The ________ meets to resolve all cross-module issues.

A) project team
B) cross-functional team
C) steering committee
D) change management team
E) none of the above
Answer: B
Diff: 3 Page Ref: 153
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68) No ERP system is totally ________ and meets all the user requirements.
A) paid for
B) finished
C) bug-free
D) free
E) none of the above
Answer: C
Diff: 2 Page Ref: 153

69) Having a well-defined project methodology is very helpful in managing the inherent
________ of the ERP project.
A) hardware
B) software
C) costs
D) risks
E) none of the above
Answer: D
Diff: 2 Page Ref: 154

70) ________ play an important role in the rapid implementation of ERP systems.
A) Consultants
B) Data
C) Software
D) Hardware
E) none of the above
Answer: A
Diff: 2 Page Ref: 154

71) External consultants may be valuable implementation partners because they have the
________ and experience of implementing many successful projects.
A) time
B) money
C) knowledge base
D) hardware
E) none of the above
Answer: C
Diff: 3 Page Ref: 155

72) Faster servers and increases in storage capacities made the single ________ feasible for ERP
systems.
A) database instance
B) user interface
C) access point
D) governance
E) none of the above
Answer: A
Diff: 3 Page Ref: 155
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73) An ERP project is said to be a "vanilla" implementation when ________ are not allowed.
A) users
B) modifications
C) managers
D) chocolates
E) none of the above
Answer: B
Diff: 2 Page Ref: 155

74) Change management activities should ________ the entire ERP project.
A) occur throughout
B) occur in the beginning of
C) occur at the end of
D) never occur in
E) none of the above
Answer: A
Diff: 2 Page Ref: 155

75) Businesses that are not skilled at building or changing systems should consider a(n)
________ ERP implementation.
A) massive
B) comprehensive
C) vanilla
D) chocolate
E) none of the above
Answer: C
Diff: 2 Page Ref: 155

76) What are the main hardware components of an ERP system?

Answer: The hardware components include all the computer devices in the ERP system. This
includes servers, clients and peripherals. Servers are high end, multi-processor machines with 64
bit processors and lots of RAM and secondary storage. Peripherals are all the other devices that
attach to the system for further functionality such as archive servers, printers, networking
hardware, and backup power supplies. Clients include the variety of devices that end-users will
use to connect to the ERP system such as PDAs and PCs.
Diff: 2 Page Ref: 141

77) Describe the different software components used in an ERP system.

Answer: Software includes the program instructions and logic that control the hardware in the
ERP system. The most fundamental piece of software is the system software or operating
systems such as Window, Unix, and Linux that help manage and connect all the hardware
resources. Next is the underlying database management system software which helps manage the
vast amount of data used in an ERP system. Then of course, there is the application software
itself which captures the business logic of the ERP application.
Diff: 2 Page Ref: 142

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78) Without the necessary people, ERP projects could not be successful. What are some of the
roles played in an ERP implementation?
Answer: The actual end-users include the employees, clients, vendors and others who will
ultimately use the system for their work, so they are crucial to its success. Then there is a large
group of IT specialists who are database administrators, support people, developers, trainers,
etc.., who help run and maintain the system. The project manager will also put together the
project team and work with top management to acquire all the resources necessary.
Diff: 2 Page Ref: 143

79) What are some of the different sub-teams that will work with the overall implementation
team?
Answer: The overall implementation will form and work with a variety of sub-teams such as the
functional area teams, change management teams, development teams, data migration teams, QA
team, and system support team. They all have important roles to perform and their work must be
carefully coordinated.
Diff: 3 Page Ref: 143

80) What are third party products and why are they needed?
Answer: Third party products are add-ons or sometimes called ERP bolt-ons which are intended
to provide additional or missing functionality that is not part of the ERP package. For example,
some companies will purchase an RFID bolt-on to expand their ERP system. These packages can
be either purchased or developed in-house and may include operational software to help
distribute reports or enforce better security.
Diff: 2 Page Ref: 144

81) What is integration and why is it so important for ERP systems?

Answer: Integration is defined as the sharing of data and data elements directly with the ERP
system without data redundancy or copying of data to another table or database. This is
especially important in the context of trying to connect third party products to the ERP system.
One must decide whether to integrate them directly or to use an interface to connect them. In
general, the interfaces should one-way either to the third party component or from the
component to the ERP system.
Diff: 3 Page Ref: 148

82) How do ERP systems make use of database technology?

Answer: Relational database technology has steadily improved since the 1970s and now
provides the backbone for ERP systems. However, ERP systems have two different, conflicting
uses of databases. First and foremost, they must efficiently process a potentially huge number of
transactions. In contrast to this, transaction data must be summarized and used for generating and
disseminating reports to a large number of users. Since these are two different purposes, it is
usually the case that an ERP system has multiple databases behind them; some for transaction
processing and some for data analysis and reporting. The most common relational databases used
with ERP systems are Oracle, DB2, Sybase, and SQL Server.
Diff: 3 Page Ref: 149

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Test Bank for Enterprise Systems for Management, 2e (Motiwalla/Thompson)

83) What is meant by ERP governance?

Answer: In an ERP implementation, governance should outline and define the responsibilities of
the different workgroups and committees. The components of governance include project
organization, project management, project owners and sponsors, budget management, and issue
escalation processes. In any ERP implementation, it is critical that governance be defined and
communicated to all involved in the process.
Diff: 3 Page Ref: 150

84) What are the issues associated with the infrastructure platform on which the ERP system will
run?
Answer: There are a number of important infrastructure considerations that can impact the
success of an ERP project. The infrastructure platform issues include the Internet and network
connectivity, system bandwidth, security, transaction volume, user load, and backup and
recovery. Servers and database capacity must be planned with system expansion in mind.
Network connectivity and bandwidth must also be planned and tested for high volume
transactions. Organizations may also create a standard PC configuration to limit the security
problems.
Diff: 2 Page Ref: 157

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