Customization

15 important questions on Customization

What are the different kinds of package-organisation misalignments?

  • Deep structure - conveys the core meaning of the real-world system that the information is intended to model. Deep structure package-organisation misalignments thus occur when real-world things, properties, states, and transformations are missing or incorrectly represented in the system
  • Surface structure - concerned with how real-world meanings are conveyed through the interface between the information systems and its users. Surface-structure  misalignments arise when the way users in the real world use information, differs from the interface.

What is organisational adaption entail?

Organisational adaption will require changes in organisational processes, policies, structures and/or roles.

What is package customisation?

It involves changing the source code, making modifications that are maintained in a separate directory, installing extensions through user exits, and using report writers to modify and embed new screens and reports.
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What are the main advantages on off-the shelf ERP systems?

  • Quick delivery
  • Incorporation of commonly used practices
  • Professionally produced technical solutions
  • Broad testing
  • Fewer errors

Why should SME's not make use of  'off-the-shelf' ERP systems?

Modifying business processes should not lead to losing uniqueness. SMEs work in niche markets, and adapting business processes to standardised ERP systems could be fatal for SMEs. Next to that, SMEs have fewer resources, limited IT expertise and acquire their strength from being unique

What is the contingency theory and corresponding four important ideas?

Contingency theory = there is no single best way to design organisational structures. The optimal approach is contingent upon various internal and external constraints.

The four important ideas:
  • There is no universal or best way to manage
  • The design of an organisation and its subsystems must 'fit' the environment
  • Effective organisations not only have a proper 'fit' with the environment, but also between its subsystems
  • The needs of an organisation are better satisfied when it is properly designed and the management style is appropriate, both to the tasks undertaken and the nature of the work.

What are the types of actual misfits?

  • Data misfit = inability of the ERP system to capture various object attributes or documents into the database of the ERP system
  • Process misfit = there are incompatibilities between the organisational and ERP system requirements in terms of processing procedures
  • Output misfit = there is an incompatibility between the organisational and ERP system requirements in terms of data presentation and information content of the output

What ar the negative effectes of actual misfits?

  • Lack of integration
  • Limited visibility
  • Loss of control
  • Decreased productivity
  • Increased costs

Which misfits are part of the laten structure?

  • Role misfit
  • Control misfit
  • Organisational culture misfit

With regard to resolution strategies, what choices does an organisation have?

  1. Customisation = changing the embedded structures of the ERP system
  2. Workarounds = uses the functionality of the ERP system different than the developers intended to achieve functionality required
  3. Accept misfit = compromising on the requirements of the organisation
  4. Changing embedded structures of the organisation

What are the disadvantages of customisation?

  • Longer implementation time
  • Problems with upgrades
  • Vendor software maintenance
  • Having minor bugs
  • Increased complexity

What are the consequences if customisation is not carried out properly?

  • Budget overrun
  • Delay
  • Project failure

What ar the disadvantages of a workaround?

  • Lower productivity
  • Lower organisational control undermine potential benefits from integration
  • Slow dawn processes
  • Increase possibility of making errors

What are two possible reasons for changing the existing business processes?

  1. The ERP system is incapable of modelling certain business practices used by the organisation
  2. The implementing organisation believes the process embedded in the ERP system are superior to the existing business processes

What are the sources for perceived misfits?

  • Resistance to change = employees refuse to work according to the structures embedded in the ERP system because these deviate from the way things were performed before, regardless whether the new way of working lead to benefits for the company
  • Ignorance = employees  do not understand the business processes and the processes embedded in the ERP system properly 
  • Wishes = employees have wishes how the ERP system would work. If these wishes are bit fulfilled, users may indicate this as a misfit

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