Chapter 4

Search for a case in which a company's ERP implementation would be considered a failure (other than those presented in the text). Summarize the case and explain the primary reasons that the implementation was a failure.

A case in which a company failed to implement the ERP systems is Nike's supply chain disaster (http://www.cio.com/article/32334/Nike_Rebounds_How_and_Why_Nike_Recovered_fro m_Its_Supply_Chain_Disaster). In this occurrence, Nike had a problem which is now referred to as 'the i2 problem' in which a software glitch cost Nike over $100 million in lost sales. Furthermore, Nike's stock price was depressed by 20 percent and many class action lawsuits followed. In the year 2000, Nike implemented an i2 demand-planning engine which computed orders for thousands more Air Garnett sneakers than market demand and computed orders for thousands fewer Air Jordan's than market demand. One of the main reasons that caused the failure and why Nike could recover was that Nike had a business plan which was widely understood. The software problem, which was related to factory orders in Nike's case, sends a ripple through the product delivery which results into a much larger effect that eventually crashes on the balance sheet. In the end, this effect was so large that Nike had to reveal its losses at analysts in order to prevent confusion from the end of SEC and its shareholders. Nike ended up stopping the use of the i2 demand planner in favor of using the SAP ERP system, which relies on orders and invoices rather than what the i2 relied on, which was predictive algorithms. Nike had been attempting to integrate the i2 demand planning software as part of a wider strategy to implement ERP, supply chain planning, and CRM software onto a single platform shared by Nike operations in areas all over the world. The reason that the i2 problem emerged was that Nike decided to install i2 while still using its legacy systems rather than adhering to their original plan which was to deploy i2 as part of its SAP ERP project. This caused some problems, such as the problem of heavy customization of i2 software with Nike's legacy systems. This spilled over into factory orders, in which the i2 system duplicated some orders and ignored other orders. Nike had felt a false sense of security when they decided to install i2 due to the fact that it was a much smaller project when compared to the SAP plan. They felt that they could use i2 without changing much of the other business software, but they were incorrect in regards to integration complications. Essentially, the installation of the i2 software was too rushed, and there was not enough training for the employees.

In Microsoft Access, we use "Forms" for: A) Data entry. B) Data storage. C) Date retrieve. D) Two of these choices are correct.

A) Data entry

Which of the following is considered one of the primary benefits of ERPs? A) ERPs allow an organization to integrate information related to multiple business functions (i.e., manufacturing, human resources, finance, etc.). B) ERPs all operate using cloud computing technology. C) ERPs create protected data silos for each function in the organization. D) ERPs use relational data models, which are required by the Sarbanes-Oxley Act of 2002.

A) ERPs allow an organization to integrate information related to multiple business functions (i.e., manufacturing, human resources, finance, etc.).

Which of the following is not one of the advantages relational data models have over other data models? A) Exclusively uses parent/child relationships. B) Increased flexibility and scalability. C) Simplicity. D) Reduced information redundancy.

A) Exclusively uses parent/child relationships

Which of the following operators would be used in a SQL query designed to simply display database records? A) SELECT. B) INSERT. C) DISPLAY. D) VIEW.

A) SELECT

The property of the primary key in a table in Microsoft Access should be set to: A) The Required field = "Yes", and the Indexed field = "Yes (No Duplicates)". B) The Required field = "NO" and the Indexed field = "Yes (No Duplicates)". C) The Required field = "Yes" and the Indexed field = "Yes (Duplicated)". D) The Required field = "NO" and the Indexed field = "Yes (Duplicated)".

A) The Required field = "Yes", and the Indexed field = "Yes (No Duplicates)".

Which of the following items can best be described as an "Agent" in the REA data model? A) Purchases. B) Accounts payable clerk. C) Raw material inventory. D) None of these choices is correct.

B) Accounts payable clerk

In Microsoft Access, we use "Tables" for: A) Data entry. B) Data storage. C) Date retrieve. D) Two of these choices are correct.

B) Data storage

In Microsoft Access, we use tables in a database for: A) Data entry. B) Data storage. C) Data retrieval. D) Two of these choices are correct.

B) Data storage

ERPs are useful to auditors for which of the following reasons? A) ERPs use cloud computing technology, which allows auditors to review transactions from anywhere. B) ERPs track details regarding creation, modification, and use of transactions throughout the organization in a single system. C) ERPs are required by the Sarbanes-Oxley Act of 2002. D) ERPs are spread across multiple logical databases, allowing auditors to minimize disruption to processing when reviewing ERP activity.

B) ERPs track details regarding creation, modification, and use of transactions throughout the organization in a single system.

An enterprise resource planning system has which of the following advantages over multiple independent functional systems? A) Modifications can be made to each module without affecting other modules. B) Increased responsiveness and flexibility while aiding in the decision-making process. C) Increased amount of data redundancy since more than one module contains the same information. D) Reduction in costs for implementation and training.

B) Increased responsiveness and flexibility while aiding in the decision-making process

Which of the following is not a potential disadvantage of using cloud computing to host an organization's ERP? A) Uncertainty about the data security of sensitive information hosted offsite. B) Reduced internal processing and storage needs for the organization. C) Uncertainty about the adequacy of the host's processing speed and availability. D) Requires a reliable Internet connection.

B) Reduced internal processing and storage needs for the organization.

Which of the following Microsoft Access objects is used to integrate data from one or more queries and/or tables in order to present information useful to decision makers? A) Tables. B) Reports. C) Forms. D) Macros.

B) Reports

Which SAP modules would a manufacturing company use to create a delivery order for a sales transaction? A) Materials Management. B) Sales and Distribution. C) Production Planning and Control. D) Logistics Execution.

B) Sales and Distribution

Which of the following is not one of the objects used in Microsoft Access? A) Tables. B) Sites. C) Forms. D) Macros.

B) Sites

Which of the following best describes a DBMS? A) The manager(s) in charge of a company's databases. B) Software that can create, modify and query databases. C) A language used to retrieve data from databases. D) A database created using Microsoft software.

B) Software that can create, modify, and query databases

Which type of data models allows each record to have multiple parent and child records? A) The hierarchical mode. B) The network model. C) The relational model. D) None of these choices is correct.

B) The network model

Which of the following statements best describes the entity integrity rule? A) A database entity must fit within the REA model. B) A record's foreign key value must be null. C) A record's primary key must have a data value. D) All values of an attribute must be of the same data type.

C) A record's primary key must have a data value

Which of the following resources is usually not modeled as an entity (table) in an REA data model? A) Cash. B) Inventory. C) Accounts receivable. D) Property, plant and equipment.

C) Accounts receivable

Which of the following items can best be described as a "Resource" in the REA data model? A) Cashier. B) Sales. C) Cash. D) Two of these choices are correct.

C) Cash

Which of the following items can best be described as an "Event" in the REA data model? A) Cash. B) Cashier. C) Cash collection. D) None of these choices is correct.

C) Cash collection

To convert a conceptual model with a maximum Multiplicities relationship of "many to many" into relationship database tables, one must: A) Create a foreign key in one of the tables to link the two tables. B) Create a relation with no attributes of its own. C) Create a relationship table to handle the many-to-many relationship. D) Many-to-many relationship cannot be represented in Access.

C) Create a relationship table to handle the many-to-many relationship

Which of the following is not one of the typical challenges organizations face when implementing an ERP? A) Integrating with external business partners' information systems. B) Converting data from legacy systems to the ERP. C) Installing the ERP software. D) Successfully completing a large project in an organization.

C) Installing the ERP software.

What is the main purpose of using foreign keys in a relational database design? A) It provides useful financial data value in the table. B) It is required in all tables. C) It is used to link tables. D) None of these choices is correct.

C) It is used to link tables

Which of the following items does not represent a UML class diagram object and its resulting database object? A) Classes → Tables. B) Attributes → Fields. C) Multiplicities → Records. D) Associations → Relationships.

C) Multiplicities → Records.

Which of the following is not a type of data model? A) Hierarchical data model. B) Network data model. C) Normalization data model. D) Relational data model.

C) Normalization data model

What kind of data model is most commonly used in today's business environment? A) Hierarchical data model. B) Network data model. C) Relational data model. D) All of these choices are correct.

C) Relational data model

Which of the following about SQL is incorrect? A) SQL is a language designed to query data in a relational database. B) SQL is based on relational algebra and allows a user to query and update the database. C) SQL is very user-friendly. D) SQL uses SELECT statement to tell the query which columns (or attributes) of a table should be included in the query.

C) SQL is very user-friendly

Which of the following correctly describes the Referential Integrity Rule? A) The primary key of a table must have data values (cannot be null). B) Each attribute in a table must have a unique name. C) The data value for a foreign key could be null. D) Values of a specific attribute must be of the same type.

C) The data value for a foreign key could be null

What kind data model is most commonly used as a basis for today's enterprise systems? A) The hierarchical mode. B) The network model. C) The relational model. D) None of these choices is correct.

C) The relational model

A foreign key in a database table is always: A) A unique identifier for a record in that table. B) A numeric field. C) The name of a UML class. D) A primary key in a related table.

D) A primary key in a related table

Classes in a relational database model for AISs are typically grouped into all of the following categories except: A) Events. B) Agents. C) Resources. D) Activities.

D) Activities

A Query in a program language can be used to: A) Update data. B) Report data. C) Retrieve data. D) All of these choices are correct.

D) All of these choices are correct

Which of the following is considered a class in the relational database model? A) Customer. B) Sale. C) Cash. D) All of these choices are correct.

D) All of these choices are correct

Which of the following statements about the requirements of table design is incorrect? A) Each attribute in a table must have a unique name. B) Values of a specific attribute must be of the same type. C) Each attribute (column) of a record (row) must be single-valued. D) All other non-key attributes in a table must describe a characteristic of the class (table) identified by the foreign key.

D) All other non-key attributes in a table must describe a characteristic of the class (table) identified by the foreign key.

A company would like to implement a management information system that integrates all functional areas within an organization to allow information exchange and collaboration among all parties involved in business operations. Which of the following systems is most effective for this application? A) A decision support system. B) An executive support system. C) An office automation system. D) An enterprise resource planning system.

D) An enterprise resource planning system

Which set of multiplicities correctly shows the relationship between the Cash Collection table and the Sales table in modeling cash sales? A) Cash Collection (1..1) - Sale (1..N). B) Cash Collection (1..N) - Sale (1..N). C) Cash Collection (1..N) - Sale (1..1). D) Cash Collection (1..1) - Sale (1..1).

D) Cash Collection (1..1) - Sale (1..1).

Which set of multiplicities correctly shows the relationship between the Cash Receipts table and the Sale table for an organization that allows customers to buy on credit and pay in multiple installments? A) Cash Receipts (1..1) - Sale (1..1). B) Cash Receipts (1..N) - Sale (0..N). C) Cash Receipts (1..1) - Sale (N..M). D) Cash Receipts (0..N) - Sale (1..1).

D) Cash Receipts (0..N) - Sale (1..1).

Which of the following about cloud computing is incorrect? A) Cloud computing is Internet-based computing where shared resources, software, and information are provided to firms on demand. B) Cloud Computing can easily host enterprise system applications. C) Security is a major issue to consider when using cloud computing. D) Clients using cloud computing do not need to periodically backup data.

D) Clients using cloud computing do not need to periodically backup data.

Which of the following tasks cannot be performed through queries in access? A) Retrieve and display data. B) Calculations of data. C) Data sorting. D) Create and update relationships.

D) Create and update relationships

Consider the following SQL query. Which item best describes the results of the query? SELECT VendorID, Sum(POTotal) FROM [Purchase Orders] GROUP BY VendorID A) Displays all purchase order lines for all vendors. B) Adds new purchase order information to the purchase orders table. C) Displays the vendor ID and all purchase order totals in the purchase orders table. D) Displays the vendor ID and the sum of all purchase order totals for that vendor.

D) Displays the vendor ID and the sum of all purchase order totals for that vendor.

True or False: Access offers modules, which are defined by users to automate processes like opening a specific form.

False

True or False: Each attribute in a table can have several names.

False

True or False: Classes could be grouped into Resources (R), Entities (E), and Assets (A) in data modeling.

False

True or False: In Access, users can edit database information in reports.

False

True or False: In a hierarchical data model, data elements are related in many-to-many relationships.

False

True or False: Queries in Access are utilized by users to enter data into tables and view existing records.

False

True or False: The SQL command "Group by" can be used to order an amount in a descending order.

False

What are the benefits of implementing enterprise systems in companies?

Managers (and auditors) can trace the creation of information throughout business processes, and also identify the participants in each process. Therefore, ES has a higher level of internal transparency compared to the typically isolated legacy systems. Other benefits include: • Availability of information across business functions o Provides greater capability for analysis of business o Improved management decision making • Coordinates business process activities and information collection for those processes and activities across business functions • Reduces data redundancy in the organization • Others?

True or False: Access is a simple database management system that can be used to run databases for individuals and small firms

True

True or False: In a database, while queries allow the user to access, read and report on desired data, the responsibility of actually making physical changes to the relational database belongs to the Database Management System (DBMS).

True

True or False: SQL is based on relational algebra and allows a user to query and update the database.

True

True or False: While hierarchical and network data models require relationships to be formed at the database creation, relational data models allow relationships to be created and updated as needed.

True

True or False: Cloud computing is an internet-based computing where shared resources, software, and information is provided to firms on demand.

True

True or False: The "Where" SQL clause can be used to link two tables.

True

True or False: The asterisk (*) following the SELECT SQL statement is a wild card indicating all columns should be selected.

True

True or False: Three types of data models used today are: the hierarchical model, the network model and the relational model.

True

Explain the three main types of classes in data modeling.

• Resources (R), events (E), and agents (A) o Resources are those things that have economic value to a firm, such as cash and products. o Events are the various business activities conducted in a firm's daily operations, such as sales and purchases. o Agents are the people who participate in business events, such as customers and salespeople.

What are the three main advantages of relational databases?

• Flexibility and Scalability: relational data models are able to handle changes in business world quickly and easily. • Simplicity: A relational data model is a relatively simple model that is easy to communicate to both database users and database developers. • Reduced Information Redundancy: A relational data model requires each piece of data to be recorded only in one place eliminating the need for information to be stored in multiple places in the organization.

Discuss the challenges of enterprise system implementation?

• Integrating various modules within the enterprise system, • Integrating with external systems such as the information system of a supplier and/or customer, • Integrating with the firm's own existing legacy systems, • Converting data from existing legacy systems to the enterprise system, and • Getting any big project implemented at a firm.

List the seven objects and their functions that are used to implement relational databases using Microsoft Access.

• Tables are used to store data. • Queries are a tool used to retrieve and display data derived from records stored within the database. • Forms are utilized to enter data into tables and view existing records. • Reports are used to integrate data from one or more queries and tables to provide useful information to decision makers. • Pages allow data to be entered into the database in real time from outside of the database system. • Macros are defined by users to automate business processes.