UGC NET CSE | December 2011 | Part 2 | Question: 45

Question

Which of the following is false concerning Enterprise Resource Planning (ERP) ?

• A. It attempts to automate and integrate the majority of business processes.
• B. It shares common data and practices across the enterprise.
• C. It is inexpensive to implement.
• D. It provides and access information in a real-time environment.

Answer 1

C is false and is the right ans   rest are true

• ERP can cost more than less integrated or less comprehensive solutions.
• High ERP switching costs can increase the ERP vendor's negotiating power, which can increase support, maintenance, and upgrade expenses.

Enterprise resource planning (ERP) is a category of business-management software—typically a suite of integrated applications—that an organization can use to collect, store, manage and interpret data from many business activities, including:

• product planning, purchase
• manufacturing or service delivery
• marketing and sales
• inventory management
• shipping and payment
• finance

ERP provides an integrated view of core business processes, often in real-time, using common databases maintained by a database management system. ERP systems track business resources—cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll. The applications that make up the system share data across various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the data.^[1] ERP facilitates information flow between all business functions, and manages connections to outside stakeholders.^[2]