Answer to Question 1
Companies of different sizes have one very important difference that has a major
impact on ERP: the availability of skilled IT personnel. Small organizations employ only one or
two IT specialists who not only manage the ERP system, but the entire IS department as well.
They are spread very thin and often are in over their heads during an ERP implementation.
Smaller, simpler ERP solutions are common among these companies.
Midsized organizations expand IT from one person to a small staff, but frequently this staff is
isolated from senior management. Such isolation creates misunderstanding and distrust. Because
of the expense, organizational disruption, and length of ERP projects, senior management must
be committed to the ERP solution. When IT management is isolated, such commitment is
difficult to obtain and may not be strong. This issue is so prevalent that many ERP consultants
say the first step in moving toward ERP is to obtain deep senior-level management commitment
to the project.
Large organizations have a full IT staff that is headed by the chief information officer (CIO),
who is a business and IT professional who sits on the executive board and is an active participant
in organizational strategic planning. ERP implementation will be part of that strategic process
and, once begun, will have the full backing of the entire executive group.
Answer to Question 2
TRUE
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