ERP Overview 3

Question 1

Which metric best measures the return on investment of an ERP implementation?

Accepted Answer

Reduction in total cost of ownership and process efficiency gains

Answer

ROI for ERP is measured through tangible outcomes like reduced operational costs, faster processes, and eliminated redundant systems.

Question 2

What is the function of an ERP 'sandbox' environment?

Accepted Answer

An isolated testing environment that mirrors production without affecting live data

Answer

A sandbox is a safe, isolated copy of the ERP used for testing configurations, customizations, and training without impacting live operations.

Question 3

Why do many ERP implementations fail to deliver expected benefits?

Accepted Answer

Inadequate change management and user adoption are leading causes of failure

Answer

Research consistently shows that poor change management and low user adoption—not technical issues—are the top reasons ERP projects underperform.

Question 4

In ERP terminology, what is a 'configuration' as opposed to a 'customization'?

Accepted Answer

Configuration uses built-in settings to adapt the system; customization involves changing the source code

Answer

Configuration adjusts system behavior using built-in options and settings, while customization involves writing new code to alter the software itself.

Question 5

What does 'two-tier ERP' mean in an enterprise context?

Accepted Answer

Running two separate ERP systems simultaneously at headquarters and subsidiaries

Answer

Two-tier ERP means a large enterprise uses a full-featured ERP at headquarters while smaller subsidiaries run a lighter, separate ERP solution.

ERP - Management Practice Test

ERP - Management Practice Test

ERP Overview 3