MIS Enterprise Resource Planning 1 — Questions and Answers
Question 1: What is the primary purpose of an Enterprise Resource Planning (ERP) system?
- To manage only the HR department's records
- To integrate all core business processes into one unified system (Correct answer)
- To replace all human employees with automation
- To manage external supplier relationships exclusively
Correct answer: To integrate all core business processes into one unified system
ERP systems integrate core business functions — finance, HR, manufacturing, supply chain — into a single unified platform.
Question 2: Which of the following is a major benefit of implementing an ERP system?
- Increased data silos between departments
- Real-time information sharing across departments (Correct answer)
- Higher transaction processing costs
- Reduced need for business process management
Correct answer: Real-time information sharing across departments
ERP systems enable real-time data sharing across departments, eliminating silos and improving organizational visibility.
Question 3: SAP and Oracle are examples of:
- Open-source databases
- Network operating systems
- Leading ERP software vendors (Correct answer)
- Business intelligence tools only
Correct answer: Leading ERP software vendors
SAP and Oracle are two of the world's leading ERP software vendors used by large enterprises globally.
Question 4: The term 'ERP II' refers to:
- A second-generation ERP focused only on manufacturing
- ERP systems extended to include external partners and e-commerce (Correct answer)
- A downgraded version of traditional ERP
- ERP systems used exclusively by small businesses
Correct answer: ERP systems extended to include external partners and e-commerce
ERP II extends traditional ERP beyond internal operations to include integration with external partners, customers, and e-commerce platforms.
Question 5: Which implementation approach replaces the old system entirely on a single cutover date?
- Phased rollout
- Parallel conversion
- Big bang conversion (Correct answer)
- Pilot testing
Correct answer: Big bang conversion
Big bang conversion replaces the legacy system entirely at once, going live with the full ERP system on a single cutover date.
Question 6: What is a major risk associated with ERP implementation?
- Too much data standardization
- Reduced integration between systems
- Significant cost overruns and implementation failures (Correct answer)
- Improved business process efficiency
Correct answer: Significant cost overruns and implementation failures
ERP implementations are notorious for significant cost overruns, schedule delays, and high failure rates if not managed properly.
MIS Enterprise Resource Planning 1
What is the primary purpose of an Enterprise Resource Planning (ERP) system?