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ERP systems integrate various functional aspects of an organization and provide a unified platform for managing different processes, unlike traditional systems which are more focused on specific tasks. ERP systems remove information and functional silos by providing a centralized information repository that can be accessed in real-time by different departments, enabling better collaboration and data sharing. The "People" component, including end-users, IT staff, consultants, and project management, is often considered the most critical in an ERP implementation as effective change management and collaboration are crucial for success.

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71 views3 pages

Review Questions

ERP systems integrate various functional aspects of an organization and provide a unified platform for managing different processes, unlike traditional systems which are more focused on specific tasks. ERP systems remove information and functional silos by providing a centralized information repository that can be accessed in real-time by different departments, enabling better collaboration and data sharing. The "People" component, including end-users, IT staff, consultants, and project management, is often considered the most critical in an ERP implementation as effective change management and collaboration are crucial for success.

Uploaded by

Unknownhaha
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We take content rights seriously. If you suspect this is your content, claim it here.
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Review Questions

1. How is the role of ERP system different from traditional TPS, MIS, DSS, and others?
Can an ERP system support all levels of management?

ERP systems are different from traditional Transaction Processing Systems


(TPS), Management Information Systems (MIS), and Decision Support Systems (DSS)
in that they integrate various functional aspects of an organization and provide a unified
platform for managing different processes, whereas TPS, MIS, and DSS are typically
more focused on specific tasks or reporting. An ERP system can support all levels of
management, including strategic, mid-management, and operational levels, by providing
relevant data and functionalities for decision-making and operations across the
organization.

2. Discuss the evolution of information systems in an organization. How can the use of
ERP systems remove information or functional silos in organizations?

The evolution of information systems in organizations has seen a shift from


isolated and non-integrated systems to more comprehensive solutions like ERP
systems. Initially, organizations used standalone systems for specific functions (e.g.,
inventory management, accounting). Over time, these systems led to information silos,
where data was isolated and not easily shared. ERP systems remove information and
functional silos by integrating data, applications, and resources across the organization.
They provide a centralized repository of information that can be accessed by different
departments in real-time, breaking down barriers between functions and enabling better
collaboration and data sharing.

3. Among all the ERP components listed in the chapter, which component is most
critical in the implementation process and why?

While all ERP components are essential, the "People" component is often
considered the most critical in the implementation process. People, including end-users,
IT staff, consultants, and project management, play a pivotal role in the success of an
ERP implementation. Resistance to change, lack of training, and communication issues
can significantly impact the implementation's success. Therefore, effective change
management and collaboration among people involved are crucial.

4. Discuss the role of ERP in organizations. Are ERP tools used for business process
reengineering (BPR) or does BPR occur due to ERP implementation?

ERP systems play a dual role in organizations. They can support and optimize
existing business processes by providing tools for efficient data management and
process automation. Simultaneously, ERP implementations often trigger Business
Process Reengineering (BPR) efforts. Organizations may choose to adapt their existing
processes to fit the ERP system's functionalities or modify the ERP software to align
with their preferred processes. BPR occurs as a result of the ERP implementation
process, with organizations reevaluating and improving their processes to leverage the
capabilities of the ERP system.

5. Why is the design and selection of ERP architecture crucial for the implementation
project? What are the long-term implications of selecting a wrong architecture?

The design and selection of ERP architecture are crucial considerations in any
implementation project, as they exert a significant impact on various aspects. These
decisions can directly affect the project's cost, scalability, maintenance, and
performance. Opting for the wrong architecture can lead to long-term consequences.
Firstly, inadequate architecture may result in scalability issues, making it unable to
support the organization's future growth, thus necessitating costly and disruptive system
modifications. Secondly, it can introduce maintenance challenges characterized by
complexity and high costs, impeding the system's ability to stay up to date with evolving
business needs. This can strain resources and disrupt operational continuity. Thirdly,
incorrect architecture choices can create performance bottlenecks, resulting in slower
response times and reduced efficiency, which, in turn, affect user productivity. Lastly, an
ill-suited architecture may present integration difficulties, obstructing the seamless
assimilation of additional modules or third-party applications, ultimately restricting the
system's overall functionality. In summary, the design and selection of ERP architecture
hold paramount importance, as they underpin critical aspects of the project's success,
with far-reaching implications for long-term efficiency and adaptability.

6. Discuss the criteria for selecting ERP vendors. Which is the most important criteria
and why?

When it comes to selecting ERP vendors, several criteria must be carefully


evaluated to ensure a successful implementation. Firstly, the ERP system's functionality
holds paramount importance, as it should align seamlessly with the organization's
specific functional requirements. Secondly, the vendor's financial viability is a crucial
consideration, ensuring they possess the stability and resources necessary for long-
term support. Clarity regarding licensing costs and upgrade policies is also essential to
avoid unforeseen expenses. Moreover, responsive customer service and robust help
desk support are vital for addressing any issues promptly. The total cost of ownership,
encompassing all expenses related to owning and maintaining the ERP system, must
be thoroughly assessed. Compatibility with the organization's existing IT infrastructure is
another critical factor to ensure seamless integration. Additionally, the ERP system's
ability to integrate with other software and systems, as well as its support for existing
legacy systems, should not be overlooked. While the importance of these criteria can
vary depending on the organization's specific context, functionality often takes
precedence as it directly impacts the ERP system's effectiveness in meeting core
operational needs.
7. From the examples provided in the chapter on ERP success and failure stories, what
are the critical success failures?
Critical success factors are pivotal in ensuring the success of ERP
implementations. Firstly, strong project management with effective leadership and
oversight is essential for steering the project towards its goals. Change management is
equally crucial, involving the proper management and transparent communication of
changes to employees to minimize resistance. Business process reengineering aligns
existing processes with ERP functionalities to optimize operations. Ensuring end-user
proficiency through training is vital for maximizing the ERP system's potential. Accurate
data transfer during migration from old systems is indispensable for data quality and
system performance. Lastly, effective collaboration with the ERP vendor is paramount,
as their support is instrumental in overcoming challenges and achieving success. These
factors collectively underpin a successful ERP implementation, streamlining processes
and enhancing efficiency.

8. What are the critical steps of the ERP project cycle? Discuss the critical success
factors?

The ERP project cycle comprises critical steps that are integral to its success. It
begins with planning and understanding, where project goals, scope, and requirements
are clearly defined. The subsequent step involves vendor selection, where the
appropriate ERP vendor is meticulously evaluated and chosen. Following this, the
design and architecture phase focuses on planning the ERP system's structure and
design. The implementation phase executes the deployment of the ERP system.
Providing end-user training and continuous support is essential to ensure proficient
utilization. Finally, the operations and post-implementation phase is dedicated to
maintaining smooth operations and promptly addressing any post-implementation
issues. Critical success factors include effective project management, change
management, business process reengineering, end-user training, data quality
management, vendor collaboration, and setting clear project goals and expectations.

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