ERP ERP Fundamentals 2 — Questions and Answers
Question 1: Which ERP deployment model gives a company the most control over data security and customization?
- Software-as-a-Service (SaaS)
- On-premises (Correct answer)
- Hybrid cloud
- Public cloud
Correct answer: On-premises
On-premises ERP is hosted on the company's own servers, giving full control over security, customization, and data governance.
Question 2: What does the term 'ERP go-live' refer to?
- Signing the vendor contract
- The moment the system becomes operational for end users (Correct answer)
- Completing user acceptance testing
- Installing the software on servers
Correct 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.
Question 3: Which of the following is a primary risk of 'big bang' ERP implementation?
- Slower adoption across departments
- Simultaneous disruption of all business processes at once (Correct answer)
- Inability to integrate third-party software
- Higher long-term licensing costs
Correct 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.
Question 4: In ERP terminology, what is a 'module'?
- A software patch or update
- A discrete functional component addressing a specific business area (Correct answer)
- A user login credential set
- A data backup file
Correct 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.
Question 5: What is the purpose of a sandbox environment in an ERP project?
- To store archived transaction data
- To test configurations and customizations without affecting production (Correct answer)
- To train new employees on company policy
- To back up live system data
Correct 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.
Question 6: Which concept describes the practice of adapting business processes to fit ERP software rather than modifying the software?
- ERP customization
- Best-practice adoption (Correct answer)
- Legacy migration
- Shadow IT
Correct 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.
Question 7: A company's ERP system automatically creates a purchase order when inventory falls below a set threshold. This is an example of:
- Manual replenishment
- Workflow automation (Correct answer)
- Ad hoc reporting
- Data warehousing
Correct answer: Workflow automation
Workflow automation in ERP triggers predefined actions—like generating a PO—based on system rules, removing the need for manual intervention.
ERP ERP Fundamentals 2
Which ERP deployment model gives a company the most control over data security and customization?