Enterprise Systems for Management, 2e (Motiwalla/Thompson)
Chapter 10 Global, Ethics, and Security Management
1) Outsourcing ERP systems helps to lower the cost of software ownership and maintenance.
2) All companies can benefit from outsourcing their ERP systems.
3) One reason that outsourcing lowers costs is because it doesn’t require any oversight.
4) Enterprise systems can change the ethical and legal environment of the organization.
5) Because of their extensive integration, ERP systems are less susceptible to security hazards.
6) Outsourcing occurs when a company decides to sub-contract its business processes or
functions to another company.
7) Outsourcing ERP systems has been done by organizations worldwide.
8) Initially, most IT outsourcing focused on software training.
9) The Y2K problem provided a huge boost to the practice of IT outsourcing.
10) Outsourcing IT functions is cost effective but decreases flexibility.
11) Front-office IT functions generally include system development and maintenance.
12) One benefit of outsourcing an ERP system is that it has a predictable monthly payment.
13) Back office IT functions typically involve customer interactions.
14) Outsourcing gives organizations access to a broader set of key IT skills.
15) It is difficult to add more hardware resources when the ERP system is outsourced.
16) Outsourcing by its very nature forces a more process-oriented perspective on the company.
17) ERP systems don’t require a high amount of maintenance.
18) ERP outsourcing is more common that IT outsourcing in general.
19) Misunderstandings often occur between the outsourcer and the organizations.
20) One benefit of outsourcing is that there are no unexpected costs.
21) Outsourcing operations means that a company might have to share their trade secrets.
22) Outsourcing is the same as offshoring.
23) Over half of all offshoring IT spending is in India.
24) Collocating team members is not cost effective in global ERP implementations.
25) Offshoring ERP development helps make change management easier.
26) Offshoring can be difficult because firms in different countries have the same local
requirements.
27) Companies in developing countries may have less mature operational models.
28) Completely localizing an ERP system decreases complexity and customization, while
defeating the purpose of a global solution.
29) Companies must be careful to perform due diligence when selecting an outsourcing vendor.
30) Many developing countries do not have strong intellectual property laws to protect your
firm’s ideas from being stolen by an outsourcing vendor.
31) Software can be rented or leased from a software vendor using the PMO model.
32) Many SaaS providers allow a wide range of customization within a basic set of functions.
33) Because they are cheap SaaS applications can instantly reach a global market.
34) The monthly costs of SaaS applications do not depreciate over time as a capital investment in
software licenses would.
35) Over a one year period, it is possible that a traditional ERP architecture might be cheaper
than a SaaS solution.
36) An ASP is a type of SaaS provider which offers to host the software of another vendor for
the company that purchased the software license.
37) It is important to find the right balance between outsourcing and in-sourcing.
38) One long standing best practice is the creation of a formal governance process to manage the
offshore relationship.
39) Small and midsize companies are most inclined to in-source their ERP operations.
40) ERP implementation teams should not use outsourcing partners as someone who will take
________ or to deflect blame when the project is not successful.
A) development
B) users
C) accountability
D) change management
41) Working with a qualified outsourcing partner may give your IT staff the chance to ________
their skills and gain confidence.
A) manage
B) oversee
C) qualify
D) improve
42) In the U.S., corporations must adhere to the disclosure rules as specified by:
A) the PMO.
B) the industry council.
C) Sarbanes-Oxley.
D) the Project Executive.
43) Ethics are developed through culture, values, and the ________ system of the individual with
influences from family and society.
A) thought
B) belief
C) political
D) corporate
44) The increased value of information and the ________ both endanger privacy in the
information age.
A) use of spreadsheets
B) greater bandwidth
C) ease of use
D) growth of information technology
45) There are very few institutions that can protect ________ globally.
A) intellectual property rights
B) system security
C) database access
D) customer rights
46) ERP systems make it ________ to use and share information.
A) easier
B) harder
C) controversial
D) necessary
47) The ethical issues surrounding the use of information technology include, privacy, accuracy,
property, and ________ issues.
A) communication
B) adaptability
C) accessibility
D) conversion format
48) Any organization which collects personal information must follow a process on how this
information is ________, used and shared.
A) processed
B) collected
C) disseminated
D) collated
49) An individual’s right to privacy must be balanced with:
A) corporate social responsibility.
B) business process efficiencies.
C) the cost of maintaining the data.
D) the public’s right to know.
50) Organizations now must get a(n) ________ to collect and share individual’s personal data.
A) database
B) network application
C) approval
D) web cookie
51) The biggest threat to privacy from ERP systems is from ________ activities.
A) BPR
B) data mining
C) security
D) data warehouse
52) ________, where crooks use an individual’s profile for fraudulent transactions, is now the
number one crime in many parts of the world.
A) Data mining
B) Phishing
C) Internet fraud
D) Identify theft
53) The large amount of data being collected today and its integration with multiple sources
means there is a greater chance the data may be:
A) corrupted.
B) converted.
C) outsourced.
D) duplicated.
54) To protect the accuracy of the data, ERP systems must embed ________, on data accuracy
and make them available to organizations.
A) test examples
B) training
C) best practices
D) policy
55) ERP systems can help to ________ data with an organization’s trading partners.
A) enable
B) synchronize
C) privatize
D) import
56) ________ collect and disseminate information about consumers to be used for credit
evaluation and certain other purposes.
A) Marketing agencies
B) Accounting firms
C) Credit reporting agencies
D) ERP systems
57) The ________ principle of ethics makes organizations realize that they are not the ultimate
owners of the information collected on individuals.
A) privacy
B) accessibility
C) accuracy
D) property
58) With the passage of the ________, the U.S. government has gained access to vast databases
of telephone and email records.
A) NAFTA Act
B) Patriot Act
C) COPA Act
D) FCRA Act
59) The ________ principle of ethics forces an organization to have proper controls for
authorization and authentication.
A) privacy
B) accessibility
C) accuracy
D) property
60) Identity theft in the U.S. is:
A) declining.
B) increasing.
C) stabilizing.
D) random.
61) In the context of an ERP implementation, ________ theory would implement very few
restrictions on using the information from this system to monitor employee performance or
collect and share consumer information from the system..
A) stakeholder
B) stockholder
C) communication
D) social contract
62) In the context of ________ theory, the ERP system would not be allowed to share or collect
consumer information unless the consumers were notified of this plan and only if this activity
would result in a net benefit to the society.
A) stakeholder
B) stockholder
C) communication
D) social contract
63) Globalization and offshoring have ________ the level of ethical concerns.
A) lowered
B) mediated
C) raised
D) mitigated
64) Often in software negotiations, the software is placed in ________ in the event the software
company declares bankruptcy.
A) storage
B) escrow
C) production
D) development
65) One danger of outsourcing is that employees for an outsourcing partner can leave and go to
work for a(n) ________.
A) government
B) attorney
C) competitor
D) consultant
E) none of the above
66) Language and time zone differences can be difficult to ________ as far as their impact on an
IT project.
A) quantify
B) identify
C) determine
D) document
E) all of the above
67) Outsourcing ERP functions might look cheaper on paper, but savvy managers must consider
the total cost of ________.
A) attorneys
B) consultants
C) ownership
D) management
E) none of the above
68) SaaS is a model for ________ delivery rather than being a separate market segment.
A) data
B) software
C) hardware
D) consultant
E) none of the above
69) The SaaS model brings lower implementation risk and a better ________ transfer between
integrators and users.
A) knowledge
B) hardware
C) data
D) consultant
E) all of the above
70) The rapid growth in SaaS-based applications is due in part to the advent of PCs and the
________.
A) printers
B) cell phones
C) internet
D) iPods
E) none of the above
71) The learning curve for SaaS-based applications is less because most users already know how
to use a ________.
A) web browser
B) personal computer
C) printer
D) iPod
E) none of the above
72) The adoption of the SaaS model may turn applications into ________.
A) hardware
B) commodities
C) disasters
D) managers
E) none of the above
73) When using a computer, most people spend the majority of their time using ________
applications.
A) custom
B) end-user developed
C) illegal
D) standard
E) none of the above
74) It is a myth to think that SaaS applications do not need any ________.
A) attorneys
B) hardware
C) configuration
D) consultants
E) none of the above
75) Ethics is sometimes referred to as the science of ________.
A) managers
B) attorneys
C) morality
D) consultants
E) none of the above
76) How can companies guard themselves from lack of performance on the part of consulting
partners?
77) Why do ERP implementations need an audit plan?
78) How has the need for SOX compliance impacted ERP systems?
79) How should an ERP system be secured?
80) How should an organization with an ERP system plan for a disaster?
81) What is outsourcing? How is it used in ERP systems?
82) What are the potential drawbacks to outsourcing ERP systems?
83) What is the SaaS model and how is it impacting ERP systems?
84) What are the ethical considerations associated with ERP systems?