Enterprise Systems for Management, 2e (Motiwalla/Thompson)
Chapter 6 Software and Vendor Selection
1) The customer is often blamed for an unsuccessful implementation.
2) Once the decision has been made to implement an ERP system, the initial step is to select an
ERP vendor.
3) Companies often bring in specialized consulting firms to assist in the ERP vendor selection
process.
4) The final step in the ERP purchasing process is to release the request for bid to the vendors.
5) Pricing for the ERP software is done in the Needs/Requirements assessment step of the
purchasing process.
6) Usually the first step in selecting an ERP system is researching the ERP vendors on the
market.
7) State of the art ERP systems usually can be run on old legacy hardware without any problems.
8) When selecting an ERP software package, it is important to research all aspects of the package
including the platform on which it will run.
9) It is not a good idea to include end-users in the vendor selection process as this will only
complicate the process.
10) An ERP vendor should not be required to explain their software release and upgrade
strategies as this is a separate issue from the purchasing decision.
11) It is good to ask department managers and subject matter experts if they have any knowledge
or experience with ERP vendors.
12) It is important to consider the ERP vendor’s overall financial position when selecting an ERP
vendor.
13) A business should not bother to examine what ERP packages their competition uses when
selecting an ERP vendor.
14) Great Plains is designed to be used by companies that have a large number of potential users.
15) Company size is an important factor to consider when choosing an ERP package since some
packages don’t work well with large numbers of users.
16) PeopleSoft is known for its financial applications in the ERP software market.
17) Some ERP products are designed with a particular industry focus.
18) Some ERP vendors have focused their products on specific IT platforms.
19) Once the ERP system is installed, the relationship with the ERP software vendor is
completed.
20) After researching all the ERP vendors, the results should be a short list of possible vendors.
21) The functional requirements process will be helpful in choosing an ERP vendor.
22) The RFI is an essential part of the ERP vendor bidding process.
23) Along with responding to the RFI, ERP vendors often will do a demo of their system.
24) The bidding process is required for purchasing an ERP system in private industry.
25) The RFP should specify what infrastructure the company already has in place.
26) The RFP or RFQ is sent to ERP vendors to get bids on specific ERP systems.
27) All the ERP bids will need to be carefully evaluated by the different groups of people
involved in the decision-making process.
28) The largest cost of the ERP system occurs after the implementation with the system design
and upgrades.
29) TCO provides a financial framework for evaluating and comparing ERP vendors and
products.
30) The accuracy of TCO when applied to ERP systems has been marginal but is still a
worthwhile exercise in the selection process.
31) The ERP implementation contract is usually separate from the software vendor license and
contract.
32) In the ERP software vendor contract it is important that all of the investments are clearly
defined.
33) If the client miscounts the number of users, this would be an example of a(n) foreseeable
circumstance that may require a change in the contract.
34) Most companies base their ERP system requirements on a business process reengineering
analysis.
35) Negotiating with two ERP vendors will yield a higher purchase price.
36) Buying a new ERP system usually means that the company will also have to update their
attorneys.
37) A good potential ERP vendor will have an active user base involved in defining future
functional changes, and this is important to consider when selecting a vendor.
38) When considering an ERP vendor it is important consider the hardware and software
infrastructure preferred to support the ERP system.
39) Oracle recently acquired, Seibel, JDEdwards and PeopleSoft in order to centralize their
offerings in the ERP world.
40) Senior management must be committed to the ERP project in terms of both resources and
time or the project is doomed to failure from the beginning.
41) When evaluating an ERP vendor, it is important to consider the ________, or the companies
already using the system.
A) partners
B) user base
C) module portfolio
D) change management team
42) If the ERP vendor is a publicly traded firm it is useful to examine public reports to make sure
they are in strong ________ position.
A) managerial
B) growth
C) technical
D) financial
43) IT ________ companies regularly survey the ERP market and are a good source of current
information on any implementation or support issues that may be happening.
A) marketing
B) design
C) research
D) management
44) When selecting an ERP vendor it is important to consider the hardware and software
infrastructure the ERP vendor supports since this will determine the fit and ________ of the
system.
A) instances
B) web capabilities
C) scalability
D) bandwidth
45) ERP vendors usually issue a statement of ________ which describes where future
development of the product is headed.
A) direction
B) support
C) historical evolution
D) vendor upgrades
46) Some ERP products were developed using ________ technology, so it is important that ERP
vendors be able to migrate quickly to current technologies.
A) outsourced
B) older
C) used
D) offshore
47) ERP vendors have different ________ strategies which determine the content and frequency
of new system fixes and upgrades.
A) development
B) management
C) cost
D) release
48) It is good to consider the relative ________ of development and maintenance staff that each
ERP vendor has available.
A) awareness
B) position
C) proportion
D) configuration training
E) training
49) Microsoft’s ERP product is called:
A) Fusion.
B) Great Plains.
C) NetWeaver.
D) Epicor.
50) ________ currently claims the largest share of the ERP software market.
A) Oracle
B) PeopleSoft
C) SAP
D) Lawson
51) ________ is an ERP vendor that focuses on the mid-market.
A) Epicor
B) PeopleSoft
C) SAP
D) Lawson
52) ________ was the first ERP vendor to develop and deploy 100 percent internet-enabled
enterprise software across its whole product line.
A) Oracle
B) PeopleSoft
C) SAP
D) Lawson
E) SSA Global
53) A key factor in choosing a software vendor will be the extent to which the ________ match
the functionality of the ERP software.
A) maintenance upgrades
B) project philosophies
C) eCommerce strategies
D) user requirements
54) In the functional requirements document, a key component will describe how the cross-
functional ________ of the new integrated ERP system will affect departments within the
company.
A) legacy systems
B) utilities
C) databases
D) data flows
55) The ________ document will describe the level of importance of each function for each
department within the company.
A) design
B) functional requirements
C) RFP
D) vendor requirements
56) Once the departmental functions and business processes have been documented, a written
request, or ________ is sent to potential ERP vendors asking for information.
A) RFI
B) RFP
C) RFB
D) functional requirements analysis
57) In ________ institutions, the bid process is almost always required.
A) private
B) non-profit
C) public
D) corporate
58) Because there are many ________ to an ERP system bid, multiple teams with a variety of
skill sets will be needed to compare and evaluate the bids.
A) functions
B) changes
C) modules
D) components
59) The choice of an ERP vendor should not just focus on cost or functionality, but on the best:
A) process management scenarios.
B) change management team.
C) overall fit.
D) data migration plan.
60) The actual cost of the ERP software itself should be around ________ of the overall cost.
A) 15%
B) 25%
C) 35%
D) 45%
61) Potential customers often use the ________ as a financial framework for evaluating the
different ERP systems proposed to them.
A) ROI
B) NPV
C) PP
D) TCO
62) Companies often turn to professional ________ companies for their ERP implementations
instead of contracting with the software vendor to install and configure their new ERP system.
A) development
B) consulting
C) outsourcing
D) integration
E) data migration
63) Deliverables must be clearly identified and delivery dates associated with them in the:
A) RFI.
B) purchase order.
C) RFB.
D) ERP contract.
64) It is more difficult for an ERP vendor to cut corners if the customer has a clear ________ for
each deliverable.
A) statement of intent
B) scope document
C) acceptance contract
D) functional requirements document
65) If after the ERP project starts and it turns out that the hardware for supporting the volume of
transactions was undersized then it may be necessary to ________ the contract.
A) dissolve
B) change
C) re-bid
D) finalize
66) To help evaluate ERP vendors it is often helpful to check the ________ that they provide
from previous customers.
A) references
B) invoices
C) processes
D) pictures
E) none of the above
67) The TCO of an ERP system includes getting the system installed and also the cost of running
the system for ________ years afterward.
A) two
B) five
C) ten
D) twenty
E) none of the above
68) According to a rule of thumb, the cost of installing the system is about ________ times the
ERP license costs.
A) two
B) six
C) ten
D) twenty
E) none of the above
69) When the ERP vendor evaluation process gets down to the final two vendors, it is good to
create a ________ between the two vendors.
A) synergy
B) competition
C) RFB
D) TCO
E) none of the above
70) Terms and conditions will be a significant part of the vendor contract and will be addressed
by the ________.
A) managers
B) executives
C) attorneys
D) consultants
E) none of the above
71) The contact manager will become an expert on the ERP ________ and conditions.
A) hardware
B) software
C) contract terms
D) data
E) none of the above
72) ________ that specialize in selection of ERP vendors may be brought in at the beginning of
the process.
A) Consultants
B) Attornies
C) Managers
D) Executives
E) none of the above
73) During contract negotiations it is best to over ________ about the progress being made.
A) state
B) commit
C) communicate
D) price
E) none of the above
74) It is important to include ________ in the vendor selection process since this will help in
change management later on.
A) attorneys
B) consultants
C) executives
D) end-users
E) none of the above
75) Some ERP products cannot support a large number of ________ so this will be an important
factor to consider when choosing a vendor.
A) attorneys
B) users
C) consultants
D) executives
E) none of the above
76) What should be the first step in the process of selecting an ERP vendor?
77) Describe three different factors that should be researched when examining potential ERP
vendors.
78) What is a “release strategy” and why is it an important factor in choosing an ERP vendor?
79) Describe the main ERP vendors and what distinguishes them from the rest.
80) What should be the result of the functional requirements process? How is this used in the
selection of an ERP vendor?
81) What is an RFP and how is it used in the vendor selection process?
82) What are the different skills needed to thoroughly evaluate the various bids from ERP
vendors?
83) What is meant by TCO and how is it used to evaluate ERP system bids?
84) What is contract life cycle management and how is this used in ERP implementations?