Activity 5

1. What are the components of an ERP system?

The components of an ERP system include:
 Hardware: Servers, Clients, Peripherals.
 Software: System Software, Database Management System (DBMS), and
Application Software.
 People Resources: End-users, IT specialists, and project managers.

2. Why would a company choose to implement an ERP?

Companies choose to implement an ERP system to streamline their business
processes, improve efficiency, gain better control over their operations, enhance
decision-making capabilities, and achieve greater visibility into their business activities.
ERP systems help businesses integrate various functions, share data across
departments, and achieve overall operational excellence.

3. What are third-party products and why are they needed?

Third-party products are additional software components that are integrated with
an ERP system to either make the system operational or add missing functionality. They
are needed to enhance or extend the capabilities of the ERP system and ensure it
meets specific business requirements.

4. What is an implementation methodology and why is it important in ERP

implementations?
An implementation methodology is a structured approach to managing the
implementation of an ERP system. It is important in ERP implementations because it
provides a framework for planning, executing, and controlling the project. It helps
manage risks, meet deadlines, and ensure that the system aligns with the business's
goals and requirements.

5. What are the pros and cons of implementing a system without customization?
Pros of implementing a system without customization (vanilla implementation)
include simplicity, ease of maintenance, and alignment with industry best practices.
Cons may involve the need for businesses to adapt their processes to fit the system,
which could be challenging for companies with unique or complex operations.
6. Why are there differences between a transactional and reporting database?
There are differences between a transactional database and a reporting
database in an ERP system. A transactional database is optimized for recording and
processing real-time business transactions, ensuring quick data updates and
maintaining data integrity. In contrast, a reporting database is designed for generating
reports and data analysis, prioritizing data retrieval and analysis performance. These
two databases serve different purposes within the ERP system and have distinct
performance requirements.