PLANNIN (ERP) PRACTICE EXAM
QUESTIONS AND CORRECT
ANSWERS 2025 GRADED + (BEST
FOR REVISION).
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, 1. Enterprise Resource Planning (ERP): Combines departments and functional information systems into a single,
integrated software program that runs off a single database so that the various departments can more easily share
information and communicate with each other.
2. Functional Information Systems: Each functional system has its own data When systems are isolated,
business processes are disjointed
Isolated systems cannot provide integrated enterprise information Inefficiency and increased cost for
organizations
3. Business Processes: A logically related set of activities that define how specific business tasks are performed
(Replenishing Inventory, Identifying Customer, Finan- cial Reporting, Hiring Employees, Fulfilling an Order)
4. Problems with Functional Information Systems: Multiple Systems, Multiple Databases, Fragmented (islands of)
Information
5. Benefits of ERP Systems: A single system, a single database, integrated infor- mation
6. ERP Deployment Strategies: Big Bang (to cast off all legacy systems at once and install a single ERP system
across the entire company
Staged Rollout or Franchising (to begin with a demonstration or a pilot installation in a particular business unit and then
sell to other units)
Slam Dunk (to focus on a few key processes contained in specific modules such as SAP financial or HR)
7. Hidden Costs and Challenges/ Potential Sources of Failure to ERP Imple- mentation: Total cost of ownership
(54K/User)- hardware, software, professional services, and staff training.
Business process redesign (BPR) - to match the standard blueprint, ERP as an information commodity vanilla.
Change Management - hardest challenge
8. 5 Factors Important to Successful ERP Implementation: Top Management Engagement
Project leaders are veterans and team members are decision makers Third parties fill gaps in expertise
Change management goes hand in hand with project planning A satisfying mindset prevails
9. business units: integrate personnel from various functional units to work togeth- er on a variety of projects within an
organization
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