ERP Fundamentals Flashcards

Which ERP deployment model gives a company the most control over data security and customization?

Answer: On-premises

On-premises ERP is hosted on the company's own servers, giving full control over security, customization, and data governance.

What does the term 'ERP go-live' refer to?

Answer: The moment the system becomes operational for end users

Go-live is the transition point when the ERP system officially replaces legacy systems and is used for live business operations.

Which of the following is a primary risk of 'big bang' ERP implementation?

Answer: Simultaneous disruption of all business processes at once

A big bang approach deploys all modules at once, meaning any failure or disruption affects the entire organization simultaneously.

In ERP terminology, what is a 'module'?

Answer: A discrete functional component addressing a specific business area

An ERP module is a self-contained component (e.g., Finance, HR, Supply Chain) that handles a specific business function within the broader system.

What is the purpose of a sandbox environment in an ERP project?

Answer: To test configurations and customizations without affecting production

A sandbox is an isolated environment where developers and testers can safely configure and test changes before applying them to the live system.

Which concept describes the practice of adapting business processes to fit ERP software rather than modifying the software?

Answer: Best-practice adoption

Best-practice adoption means aligning company workflows to the ERP's built-in processes, reducing costly customization and future upgrade complexity.

A company's ERP system automatically creates a purchase order when inventory falls below a set threshold. This is an example of:

Answer: Workflow automation

Workflow automation in ERP triggers predefined actions—like generating a PO—based on system rules, removing the need for manual intervention.