Enterprise Resource Planning Systems

Study Guide

I. What is Enterprise Resource Planning?

A. Enterprise Resource Planning is the integrated management of core
business processes. ERP brings together business functions such as
inventory management, accounting, finance, human resources, supply
chain management, and more. This shared database allows employees in
one business function to view and access data generated in other
business functions.
B. The shared database structure of an ERP allows greater synchronization
of information across business functions. Employees can interact with a
single system rather than with separate systems in siloed business
functions.
C. ERP has many benefits:
1. Information is available real-time rather than waiting for data to
be shared across business functions.
2. Collaboration and teamwork are encouraged because information
is widely distributed.
3. Employees only need to learn how to use a single system rather
than multiple.
4. Lower operational costs by eliminating redundant systems and
simplifying system maintenance.
II. Database Management System (DBMS)
A. A database management system is the interface or program between a
company's database and the application programs that access the
database. The DBMS defines, reads, manipulates, updates, and deletes
data in a database. It controls access to the data and maps each user's
view of the data (i.e., the DBMS can be programmed to present data in a
way that makes sense for each user).
B. A database management system optimizes how data in databases are
stored and retrieved. The database management system facilitates an
organization's administrative operations related to disaster recovery,
regulatory and legal compliance, and performance monitoring.
III. What is a data warehouse?
A. A data warehouse is used to aggregate data from multiple sources into a
central integrated data repository. Data warehouses are used to analyze
business activities and operations.
 B. Whereas databases are typically focused on processing transactions, a
data warehouse does not process data. A data warehouse is the storage of
data from disparate sources that are aggregated in order to facilitate data
analysis.

Summary
Traditionally, companies have used separate systems to process financial and
nonfinancial information. Enterprise resource planning integrates both types of
information and improves the usability of information within a company. Database
management systems allow users convenient access to information and ensure that
company data is safeguarded and complies with various regulatory and legal
requirements. Companies use data warehouses as an integrated repository for data.
FLASHCARDS

What is Enterprise Resource Planning (ERP)?

 Enterprise Resource Planning is the integrated management of core business
processes such as inventory management, accounting, finance, human
resources, supply chain management, and more.
 This shared database allows employees in one business function to view and
access data generated in other business functions.

What are the benefits of ERP?

The benefits of ERP:

 Information is available real-time rather than waiting for data to be shared

across business functions.
 Collaboration and teamwork are encouraged because information is widely
distributed.
 Employees only need to learn how to use a single system rather than multiple.
 Lower operational costs by eliminating redundant systems and simplifying
system maintenance.
What is a database management system (DBMS)?
 A database management system is the interface or program between a
company's database and the application programs that access the database.
 The DBMS defines, reads, manipulates, updates, and deletes data in a database.
It controls access to the data and maps each user's view of the data.

What is a data warehouse?

 A data warehouse is used to aggregate data from multiple sources into a central
integrated data repository.
 Data warehouses are used to analyze business activities and operations.
 A data warehouse does not process data.

Question 1 
aq.er.plan.sys.001_1906
All of the following are characteristics of an Enterprise Resource Planning (ERP)
system except:
Modular
A common or central database to support the entire system
Integrated and a consistent look and feel
Integrated vulnerability assessment
 This Answer is Correct
A vulnerability assessment is an important aspect of security controls but is not a
characteristic of an ERP system.
Question 2 
aq.er.plan.sys.002_1906
Which of the following items is an advantage of an ERP (Enterprise Resource
Planning) System?
Scalability
Low cost of implementation and maintenance
Lack of complexity
Affordable software
 This Answer is Correct
Most ERP systems can grow with a business, adding modules or customizations as the
company grows.
Question 3 
aq.er.plan.sys.003_1906
All of the following items are an advantage of an Enterprise Resource Planning
system except:
Long-term cost savings
Cost of the software
Integration of company-wide data
Improved regulatory compliance
 This Answer is Correct
The cost for ERP software can be prohibitively high.
Question 4 
aq.er.plan.sys.004_1906
All of the following are a function of a database management system (DBMS) except:
Backup and
recovery
Encryption
Data integrity
Malware detection
 You Answered Correctly!
This is an important security control but not a function of a DBMS.
Question 5 
aq.er.plan.sys.005_1906
Which answer BEST describes a data warehouse?
A location where document hard copies can be aggregated and analyzed
A term to associate multiple sites used for disaster recovery
A storage of large amounts of data from various databases used for specialized analysis
A storage commonly used for critical data such as system relationships, data types,
formats, and sources
 You Answered Correctly!
A data warehouse is a collection of multiple databases usually containing historical
information not usually saved in production systems.