Which of the following statements about enterprise systems is NOT true?

Difficulty: Medium

Correct Answer: Enterprise software is expressly built to allow companies to mimic their unique business practices in every detail, rather than using standardised best practice processes.

Explanation:


Introduction / Context:
Enterprise systems, often called enterprise resource planning systems, integrate key business processes and data across functions such as finance, operations, sales and human resources. Exam questions on enterprise systems frequently ask which statements are true or false in order to test understanding of standardisation, best practices and organisational impact. This question specifically asks for the statement that is not true, so careful reading of each option is required.


Given Data / Assumptions:

  • Enterprise systems are large integrated software packages implemented across many departments.
  • They are designed around standardised processes and data definitions.
  • They support reporting, analysis and coordination across the enterprise.
  • Customisation is possible but is usually limited to avoid complexity and high cost.


Concept / Approach:
The key idea is that enterprise systems promote standardisation, not unlimited customisation of unique business practices. Vendors design these systems around what they consider best practice processes, and organisations configure rather than completely redesign the software. Enterprise systems also typically include analytical and reporting tools and rely on shared data definitions to integrate information across functions. To find the incorrect statement, we look for an option that claims the opposite, namely that enterprise software is expressly built to copy every unique practice of each company.


Step-by-Step Solution:
Step 1: Review option B, which states that enterprise software includes analytical tools for performance evaluation. This is generally true because such systems support management reporting and dashboards. Step 2: Review option C, which mentions standardised data definitions and formats across the organisation. This is a core feature of enterprise systems that break down information silos. Step 3: Review option D, which notes that enterprise systems help firms respond quickly to customer requests by integrating information. This is another widely recognised benefit. Step 4: Review option A, which claims that enterprise software is expressly built to mimic each company unique business practices in every detail. This contradicts the idea of standardised processes and best practices and is therefore not true in general. Step 5: Recognise that option E cannot be correct because we have identified that option A is not true, so not all statements can be accurate.


Verification / Alternative check:
In practice, when organisations implement enterprise systems, they often face a choice: change their processes to fit the system, or customise the system to fit their existing processes. Most implementation methodologies encourage businesses to adopt the standard processes built into the software whenever possible, because heavy customisation increases cost, complexity and upgrade difficulty. This experience shows that enterprise systems are not primarily built to mimic every unique variation of business practice, but rather to encourage standardisation. At the same time, these systems offer integrated reporting and analytical tools and rely on common data structures, which supports the truth of options B, C and D.


Why Other Options Are Wrong:
Option B is correct, not incorrect, because enterprise software usually includes modules for reporting, key performance indicators and other analytics. Option C is also correct; a central advantage of enterprise systems is standardised data across departments. Option D is correct as well; integrated systems help reduce delays in responding to customer queries by providing a single source of truth. Option E is wrong because at least one of the statements, option A, is not true, so it is not the case that all statements are accurate.


Common Pitfalls:
A common pitfall is to assume that enterprise systems can and should be customised heavily so that businesses do not need to change their processes at all. This view overlooks the cost and risk of excessive customisation and misunderstands the purpose of best practice templates in enterprise software. Another mistake is to misread the question and select a true statement when asked to find the one that is not true. Carefully distinguishing between configuration, which is supported, and full mimicry of unique practices, which is not the default design goal, helps avoid confusion in exams and in real implementations.


Final Answer:
Enterprise software is expressly built to allow companies to mimic their unique business practices in every detail, rather than using standardised best practice processes.

Discussion & Comments

No comments yet. Be the first to comment!
Join Discussion