...free essay on "Ics Sap for Atlam" from Anti Essays, your source for free research papers, essays, and term paper examples. 2.0 Issues and Analysis 2.1 Issues 2.1.1 Implementation of SAP system Based on the case study, ATLAM need to upgrade its accounting system and the Finance Manager, Mr. Zulkifli Osman decided to implement new accounting system called SAP. But somehow, he had to reach an agreement with other top management and this decision had leaded them to some arguments about implementing SAP for the company. First of all, the argument is about the cost of implementing the SAP system. Compared to ACCPAC system, the cost of implementing SAP is higher and it might affect the company financial and non-financial information and their strategic implications in the long-run. Second argument is the annual license fee as well as the security for the system. For the internal control and their audit purposes, they need to allocate one ID per user. This can be related to the security for the system too. In order to access the system, user must have ID to access it. Therefore, it is going to cost them a lot. In this situation, it’s impossible for ATLAM to bear the costs since ATLAM’s cash flow as at December 2001 was at a deficit. The third argument is about the time constraint issue. Due to the time constraint, ATLAM need to implement SAP as soon as possible since the decision to upgrade the accounting system has been made. In addition, to implement the SAP for the accounting...
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...Analysis on SAP Several feasibility factors that are important for the implementation of SAP were analyzed. A. Economic feasibility Economic feasibility is analyzed by identifying the financial benefits and costs associated with the implementing SAP. It is also commonly referred as cost benefit analysis. A new or renovated information system which is SAP allow complex segmental reporting, provision for integration of data, system maintenance and support were possible, audit points raised during procurement process might be resolved with provision of Materials Management Module. Thus, SAP could improve ATLAM to be more efficiency, speed and flexibility because can access data quicker and good for decision making. Besides that, the implementation benefit is the increase speed of activity and reduction on error because there is a segmental reporting such divisional profit and loss, variance analysis. Other benefits include the improvement of employee morale, broader societal implication, promote of ATLAM learning and understanding and more timely information. Meanwhile, the costs comprises of the development of SAP such implementation of SAP that cost RM5,000,000; new hardware that cost RM 1,000,000; training costs RM 1,272,550; and customization work RM 72,840. B. Operational feasibility For ATLAM, with the implementation of SAP, it can fit the business model in ATLAM and overcome the drawback of current system which cannot produce financial reports. In fact, SAP system...
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...CASE 6 : SAP FOR ATLAM BACKGROUND OF THE COMPANY Company Name : Akademi Teknikal Laut Malaysia (ATLAM) Principal Activities : Education & Training Commenced Operation : 15th August 1981 Number of Employees :Approximately 200 employees Office : Melaka & Terengganu Main Problem : Asked to upgrade its accounting system with the PETRA group-wide SAP system which takes up a very high initial investment compared to ACCPA Introduction on SAP SAP is an Enterprise Resources Planning (ERP) and stands for Systems, Applications and Products in data processing. It is a system that handles almost all departments in an organization. SAP has several modules as illustrated below. ISSUES/CHALLENGES AND SOLUTION 1. Upgrading accounting system with the PETRA group-wide SAP system or ACCPA Upgrading to the SAP system requires a lot of money and based on the current cash flow, ATLAM has negative cash flow. Hence, the reluctance of a few meeting members to show ‘green light’ on the implementation of SAP. However, since the initial investment will be partially funded by the PETRA group, lack of fund should not cause worry among the committee members. SOLUTION : A detailed cost benefit analysis should be done to determine whether ACCPA or the SAP system should be used as ATLAM’s accounting system. COST BENEFIT ANALYSIS A. Initial Investment As required by Mr. Zulkifli, a cost benefit analysis is done to determine whether the implementation of the new system, SAP will...
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...AP for ATLAM Summary Termination of Mr. Lim A. Not rational to terminate Lim A loss for ATLAM once the SAP is successful to be implemented Negative impact to members Suggestion: seminar by an expert in SAP system cost constraints impractical to Atlam better integrate operational data match the group reporting system or Implementation of SAP 1. SAP's Cost Type of cost Non- financial costs Financial costs Should implement as its benefits is more than costs. Needs to ensure SAP system runs smoothly and efficiently. ATLAM Train & prepare the Malaysians for the Maritime industry Wholly owned by MICT Berhad Privatized on 1 Jan 1997 Vision: Leader in maritime education & training Mission: facilitate valued added learning via a conducive environment & provide excellent services to its clients Single user system 1981 - 2001 used to enter debit & credit SAP system link with PETRA's system to match with group reporting structure B. Conclusion Implementation of SAP benefit > cost Termination of Mr. Lim is unethical 3. Staff Resistance Resistance to change is a normal response. Lim as user representative refuse to accept the implementation of SAP system because of the higher cost of implementation that he voice up in the meeting Lim showed aggression and anger towards Zulkifli in meeting as signs and symptoms of an adverse reaction to change Staff resistance can be one of the factors of failure in implementing new system Example : Gopal as User Project...
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...1.0 INTRODUCTION In this case, it’s depicts the changing from a current system of ATLAM company which is a wholly owned organization of MICT Berhad to a new accounting system that called SAP.The purpose of the establishment of AkademiTeknikalLaut Malaysia (ATLAM) is to trainand prepare Malaysian for maritime industry. Pre-2000, ATLAM relied on customized single-user system bought from a vendor where the academy’s desktop computers (PCs) were solely used to enter accounting entries which is very poor state and far behind its other compatriots in Europe and Japan in term of IT infrastructure. However, improvements has been done in Information Technology since it has been privatized by MICT Berhad and ATLAM had overhauled its Information Technology (IT) in year 2000.gain The system had not been functioned to produce financial statement. After knowing the weakness, ATLAM has two alternatives which is ACCPAC and Petra’s group-wide SAP. ATLAM has been asked to upgrade its accounting system with the Petra group-wide SAP system. Zulkifli as ATLAM’s finance manager need to critically assess the risks associated with the decision on whether to or not to implement SAP in ATLAM. Zulkifli has arranged a meeting to discuss the new system upgrade. He had invited Sani (Project Manager), Gopal (User Project Manager), Lim (User Representative) and Kamal (Functional Analyst) to discuss about implementing SAP in ATLAM. As it shown in the case, the first meeting have not come to a mutual...
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...INTRODUCTION Akademi Teknikal Laut Malaysia (ATLAM) was established on 15 August 1981, which wholly owned and organization by MICT Berhad located in Melaka and Terengganu. ATLAM was focused on training and preparing Malaysia for the maritime industry. On 1 January 1997 ATLAM went privatized and became one of the subsidiaries of the PETRA group-wide SAP. ATLAM vision and mission was to be a leader in maritime education and training and to facilitate value added learning via a conductive environment and provide excellent services to its clients. According to the conductive study by World Maritime University in 1997 ATLAM IT infrastructure was poor if compared to other countries in Europe and/or Japan. Because ATLAM used the single-user system, which allows users to produce only accounting entries, the system could not function for financial report. The access for better IT facilities was provided by PETRA after ATLAM was privatized. In 2001, ATLAM IT solution was to follow the PETRA IT infrastructure standards. ATLAM management had been asked to upgrade its accounting system with the PETRA group-wide SAP system in December 2001. SAP system, application and product in data processing are integrated business applications package that covered most functions of an organization. Those core functions of SAP are Financial Accounting, Controlling, Human Resources, Plant Maintenance, Project Systems and Basis System. In particularly, SAP system is feasible for ATLAM to run its financial report efficiency...
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...Introduction ATLAM, Akademi Teknikal Laut Malaysia is an educational institution focused on training and preparing Malaysians for maritime industry. It was established on 15 August 1891 and on 1st January 1997 it was privatized and brought into the field of Petra Group of Companies. It was then realized, the IT infrastructures were outdated compare to its competitors and they were asked to upgrade their accounting system to PETRA group-wide SAP system. SAP was an integrated business application package that covered most functions of an organization like Financial Accounting, Controlling, Asset Management, Sales & Distribution, Material Management, Human Resource and so on. Implementing SAP for ATLAM was not easy as they were previously relied on a customized single user system. They had to change almost everything of their previous system. Additionally SAP was costly, time consuming (in terms of implementing), and many employees were resisting against it. Then there was an alternative solution by the name of ACCPAC. Keeping all these issues under consideration Zulkifli, the finance manager decided to imply SAP and he asked for assistance from his team. Feasibility Study Feasibility study represents how practical the project is and it could be studied from different perspective of feasibility Economic Feasibility- Economic Feasibility can be referred as a core feasibility study as it represents the cost-benefit analysis. It is difficult to identify precisely about...
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...Prezi Your prezis Learn & Support Explore SAP for ATLAM No description by norliana lani on 5 November 2012 412 Comments (0) 0 characters used (of 300 allowed) Report abuse Transcript of SAP for ATLAM SAP for ATLAM Summary Termination of Mr. Lim A. Not rational to terminate Lim A loss for ATLAM once the SAP is successful to be implemented Negative impact to members Suggestion: seminar by an expert in SAP system cost constraints impractical to Atlam better integrate operational data match the group reporting system or Implementation of SAP 1. SAP's Cost Type of cost Non- financial costs Financial costs Should implement as its benefits is more than costs. Needs to ensure SAP system runs smoothly and efficiently. ATLAM Train & prepare the Malaysians for the Maritime industry Wholly owned by MICT Berhad Privatized on 1 Jan 1997 Vision: Leader in maritime education & training Mission: facilitate valued added learning via a conducive environment & provide excellent services to its clients Single user system 1981 - 2001 used to enter debit & credit SAP system link with PETRA's system to match with group reporting structure B. Conclusion Implementation of SAP benefit > cost Termination of Mr. Lim is unethical 3. Staff Resistance Resistance to change is a normal response. Lim as user representative refuse to accept the implementation of SAP system because of the higher cost of implementation that he voice up in the meeting Lim showed...
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...Akademi Teknikal Laut Malaysia (ATLAM) was establish on 15 August 1991 but then subsequently privatized on 1st January 1997. It is located in Melaka and Terengganu. ATLAM’s vision is to be a leader in maritime education and training, while its mission is to facilitate value added learning via a conducive environment and offer services to its clients. ATLAM revamped its Information Technology (IT) facilities in 2000. Before 2001, ATLAM relied on a customized single-user system bought from a vendor. The desktop computers (PCs) were only used to enter accounting entry but had not been functioned to produce financial report. Consequently, ATLAM needed to look for alternative to upgrade its accounting system. On December 2001, the management of ATLAM had been asking to upgrade its accounting system with the PETRA group-wide Systems, Applications and Products (SAP) system. It is an incorporated business applications package that covered most function of an organization. There are some factors to look into the company especially on IT infrastructure, accounting system and acceptance the new system for ATLAM staff. Mr. Zulkifli Osman, as the Finance Manager since 1995, had to critically assess the risks associated with the decision of whether changing to SAP system suggested by PETRA Group or ACCPAC System suggested by Mr. Lim (User Representative). The issues and solution The major problem faced by ATLAM was not the cost of implementing the SAP system but the resistance to change...
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...INTRODUCTION ATLAM ATLAM is a maritime industry that created to need to train prepare Malaysians for the maritime industry and establishment of Akademi Teknikal Laut Malaysia (ATLAM) on 15 August 1981. It was then subsequently privatised on 1 January 1997. Its vision was to be a leader in maritime education and training, while its mission was to facilitate value added learning via a conducive environment and provide excellent service to its clients. The academy located in Melaka and Terengganu, had 195 staff by 2001, 89 of them were in administration and the remaining 106 in training. The management structure of ATLAM :consisted of a chief executive officer, a corporate affairs director, a head of marine engineering and a head of human resource management and administration. Zulkifli had been the finance and accounts manager since 1995. THE IT INFRASTRUCTURE ATLAM overhauled its information technology (IT) facilities in 2000. Before this they had been in a very poor state. A study on ATLAM was conducted in 1997 by the World Maritime University and it had deemed ATLAM to be behind its other compatriots in Europe and Japan in terms of IT infrastructure. The 1997 privatisation of ATLAM resulted in the introduction of new shareholders and brought the academy into the fold of the PETRA group of companies. This provided ATLAM with the access to better IT facilities such as LAN, WAN, network computing, server and desktop administration. ATLAM’s IT solutions were implemented...
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...SAP for ATLAM Background It had been December 2001 and the management of ATLAM, a wholly owned organization of MICT Berhad, had been asked to upgrade its accounting system with the PERT group-wide SAP system. The cost of implementing SAP in ALTAM is one of the main concern. Apart from that, it had been more of whether ATLAM’s staff would be ready to embrace the new systems. The purposed of SAP system was scheduled to be phased in by 1 April 2002 i.e. the star of the financial year. Situation 1: Implementation of SAP system in ATLAM but parent company pays the cost ATLAM has to evaluate the decision to upgrade the current accounting system to the SAP system. Although it is critical to assess the risks associated with decision, ATLAM has to ensure the best possible outcome for the organisation. In order for better access of ATLAM’s IT facilities and the need for consolidation with PETRA’s servers to leverage group wide PETRANET network system, ATLAM need to consider implementing the SAP system for replacement of existing accounting system. Recommendation Due to some constraints that faced by ATLAM (timely and costly), it is recommended that the parent company of ATLAM pay for the SAP system. The SAP systems will be capitalized in the parent company’s book and depreciation will be calculated and recorded in their accounts. This cost will be incorporated in the group consolidated accounts and not the company accounts of ATLAM. Situation 2: Implementation of SAP system...
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...Introduction ATLAM, Akademi Teknikal Laut Malaysia is an instructive foundation concentrated on preparing and gets ready Malaysians for marine industry. It was set up on 15 August 1891 and on 1st January 1997 it was privatized and brought into the field of Petra Group of Companies. It was then understood, the IT bases were obsolete compare with its rivals and they were requested to advance their accounting system to PETRA bunch of wide SAP system. SAP was an incorporated business application bundle that secured most elements of an association like Financial Accounting, Controlling, Asset Management, Sales & Distribution, Material Management, Human Resource and many more. Implementing SAP for ATLAM was not simple as they were already depended on a modified single user system. They needed to change verge on everything of their past system. Furthermore SAP was unreasonable, prolonged (as far as executing), and numerous representatives were opposing against it. At that point there was an option arrangement by ACCPAC. Holding every one of these issues under thought Zulkifli, the finance manager chose to infer SAP and he requested help from his group. Feasibility Study Feasibility study represents how practical the project is and it could be studied from different perspective of feasibility Economic Feasibility- Economic Feasibility can be referred as a core feasibility study as it represents the cost-benefit analysis. It is difficult to identify precisely about the cost...
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