Deck 6: Software and Vendor Selection

Question 1

Pricing for the ERP software is done in the Needs/Requirements assessment step of the purchasing process.

Answer 1

False

Question 2

Usually the first step in selecting an ERP system is researching the ERP vendors on the market.

Answer 2

True

Question 3

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.

Answer 3

False

Question 4

When selecting an ERP software package, it is important to research all aspects of the package including the platform on which it will run.

Question 5

Great Plains is designed to be used by companies that have a large number of potential users.

Question 6

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.

Question 7

It is important to consider the ERP vendor's overall financial position when selecting an ERP vendor.

Question 8

Once the decision has been made to implement an ERP system, the initial step is to select an ERP vendor.

Question 9

Once the ERP system is installed, the relationship with the ERP software vendor is completed.

Question 10

It is good to ask department managers and subject matter experts if they have any knowledge or experience with ERP vendors.

Question 11

The final step in the ERP purchasing process is to release the request for bid to the vendors.

Question 12

The customer is often blamed for an unsuccessful implementation.

Question 13

State of the art ERP systems usually can be run on old legacy hardware without any problems.

Question 14

Some ERP vendors have focused their products on specific IT platforms.

Question 15

It is not a good idea to include end-users in the vendor selection process as this will only complicate the process.

Question 16

Some ERP products are designed with a particular industry focus.

Question 17

A business should not bother to examine what ERP packages their competition uses when selecting an ERP vendor.

Question 18

After researching all the ERP vendors, the results should be a short list of possible vendors.

Question 19

Companies often bring in specialized consulting firms to assist in the ERP vendor selection process.

Question 20

PeopleSoft is known for its financial applications in the ERP software market.

Question 21

When considering an ERP vendor it is important consider the hardware and software infrastructure preferred to support the ERP system.

Question 22

The functional requirements process will be helpful in choosing an ERP vendor.

Question 23

The RFP should specify what infrastructure the company already has in place.

Question 24

The ERP implementation contract is usually separate from the software vendor license and contract.

Question 25

The bidding process is required for purchasing an ERP system in private industry.

Question 26

Along with responding to the RFI, ERP vendors often will do a demo of their system.

Question 27

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.

Question 28

The RFI is an essential part of the ERP vendor bidding process.

Question 29

In the ERP software vendor contract it is important that all of the investments are clearly defined.

Question 30

All the ERP bids will need to be carefully evaluated by the different groups of people involved in the decision-making process.

Question 31

The RFP or RFQ is sent to ERP vendors to get bids on specific ERP systems.

Question 32

Buying a new ERP system usually means that the company will also have to update their attorneys.

Question 33

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.

Question 34

Most companies base their ERP system requirements on a business process reengineering analysis.

Question 35

Negotiating with two ERP vendors will yield a higher purchase price.

Question 36

Oracle recently acquired, Seibel, JDEdwards and PeopleSoft in order to centralize their offerings in the ERP world.

Question 37

The accuracy of TCO when applied to ERP systems has been marginal but is still a worthwhile exercise in the selection process.

Question 38

The largest cost of the ERP system occurs after the implementation with the system design and upgrades.

Question 39

TCO provides a financial framework for evaluating and comparing ERP vendors and products.

Question 40

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.

Question 41

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

Question 42

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

Question 43

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

Question 44

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

Question 45

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.

Question 46

________ is an ERP vendor that focuses on the mid-market.

A) Epicor
B) PeopleSoft
C) SAP
D) Lawson

Question 47

The actual cost of the ERP software itself should be around ________ of the overall cost.

A) 15%
B) 25%
C) 35%
D) 45%

Question 48

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

Question 49

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

Question 50

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

Question 51

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

Question 52

In ________ institutions, the bid process is almost always required.

A) private
B) non-profit
C) public
D) corporate

Question 53

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

Question 54

________ 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

Question 55

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

Question 56

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

Question 57

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

Question 58

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

Question 59

Microsoft's ERP product is called:

A) Fusion.
B) Great Plains.
C) NetWeaver.
D) Epicor.

Question 60

________ currently claims the largest share of the ERP software market.

A) Oracle
B) PeopleSoft
C) SAP
D) Lawson

Question 61

What is a "release strategy" and why is it an important factor in choosing an ERP vendor?

Question 62

What should be the first step in the process of selecting an ERP vendor?

Question 63

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

Question 64

Describe the main ERP vendors and what distinguishes them from the rest.

Question 65

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

Question 66

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

Question 67

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

Question 68

________ 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

Question 69

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

Question 70

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

Question 71

Describe three different factors that should be researched when examining potential ERP vendors.

Question 72

Deliverables must be clearly identified and delivery dates associated with them in the:

A) RFI.
B) purchase order.
C) RFB.
D) ERP contract.

Question 73

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

Question 74

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

Question 75

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

Question 76

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

Question 77

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

Question 78

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

Question 79

What should be the result of the functional requirements process? How is this used in the selection of an ERP vendor?

Question 80

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