...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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...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 It was then realized, the IT infrastructures were outdated compare to its competitors and they were asked to upgrade their accounting system to PETRA group-wide SAP system.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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...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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...Table of Contents 1.0 Introduction 2-3 2.0 Summary of case 3-4 3.0 Company Background 4-5 4.0 Issue 5 4.1 Overcoming staff resistance 5-7 4.2 Implementation of the system......................................................................8 4.2.1 Feasibility Study………………………………………………...8-14 4.2.2 Gantt Chart 15 4.3Managing Team Confilct 18-20 5.0 Conclusion 20 6.0 Bibliography 21 1.0 Introduction “It has never been a better time to be an accountant”, stated by a president of IFAC. (International Federation of Accountants , 2005) This is because accountants are recognized as contributing to every sector and aspect of the global economy. Accountants not only need to act as auditors, but also management accountants, business leaders, corporate financiers and business advisers. (International Federation of Accountants , 2005) This shows that professional accountant has great responsibility, not only toward the company itself, but also toward stakeholders and the public. Accountant must also act as project manager to take part in the project management activities in some organization. Nowadays, project management is a very important activity in the organization due to the changing environment. Organization need to cope with these changes by upgrade the technology used in the organization, introduce new products or revise their working practices. As a project manager, accountant will face some conflict that happened in the team. This is because...
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...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 agreement on whether to implement SAP in ATLAM as Lim has pointed...
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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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...Below is a 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...
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...ANNUAL REPORT Building A Global Brand What’s the value in a brand name? Everything. A brand that is reputable and stands apart from others provides competitive advantage, confirms credibility, adds value to a company and ensures long lasting customer relationships. As an organisation that has been around for more than three decades, the DRB-HICOM name is one that needs no introduction. It is an organisation that prides itself on always staying ahead of the game, in setting high standards in all its endeavours and constantly challenging the status quo. With a portfolio of more than eighty operating companies in its stable, the Group’s diversity elevates it to a brand with unique character and promise. PROTON, Alam Flora, PUSPAKOM, Pos Malaysia, MODENAS, Bank Muamalat, Glenmarie Properties – these are some of the household names that form a part of the DRB-HICOM Group. From the Automotive and Services sectors to the Property, Asset and Construction sector, DRB-HICOM’s operating companies have always had a strong presence in the local market. Helmed by bold leadership and imbued with core values, strong work ethics and a vision to be number 1, the DRB-HICOM brand is well-positioned to go a step further to become a leading global brand in the future. OUR VISION to be number 1 and continuously excel in all that we do OUR MISSION to lead in the growth of the nation in the areas of DRB-HICOM’S core businesses SHARED VALUES excellence decorum teamwork integrity...
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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 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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...MAF 680: SAP for ATLAM Debate Mun : Assalamualaikum and good morning, everyone. Others :(respond to salam) + (morning!) Mun : We are here today to debate on 2 issues that have been identified in our company, ATLAM. First and foremost the first issue is with regards to…and the second issue is mainly about… Well Adilah, I am eager to know on what are feasibility studies all about? Dila : (defining feasibility) John : Enough on explaining the definition please. I am more concern whether feasibility studies manage to help us in decision making process, at least in general point of view. Dila : (operational + technical feasibility) the other feasibility studies shall be further clarify by colleague, Nadhira. Dira : Thank you Adilah.. (explains schedule + legal feasibility) Acap : cop.cop..copp. Sorry for interrupting. May I know what is the connection or purpose of legal feasibility with the new system-SAP that shall be implemented? Dira : (explain connectivity) Dila : No.no..no..no. May I add on, Nadhira? (after Dira nodded) I personally think economic feasibility is more suitable for the SAP system rather than legal feasibility. This is because…(explain economic) Aziah : Since you have brought issues on economy feasibility, I would love to further explain on the initial outlay…+ tax cash flow Acap : Hold on please! Why there is a positive value for every year. This is illogical and I think this is ridiculous. Usually when a new system is proposed and be...
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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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...organization. But now, ATLAM is facing a tight circumstance to embrace the new system-SAP since the existing economic crisis play a part in impacting ATLAM financial position. Now, the management of ATLAM, a wholly owned organization of MICT Berhad, had been asked to upgrade its accounting system with the PETRA group-wide SAP system as to meet PETRA group service and time quality requirement. But with the current financial position and culture of ATLAM staff style of working urged the ATLAM management to think carefully and critically to ensure the best possible outcome for the organization. PROBLEMS: 1) Financial position of ATLAM was in fiscal deficit during the year 2001. Incoming cash flow of ATLAM is much lower than the outgoing cash flow. Root cause: Higher expenses on operational cost and implementation cost SAP; such as software cost, SAP license cost and customization cost for each financial report). Year 2001: SAP implementation cost: RM 5000000 -Request for each customization report (going to cost about RM 10,000 per report). -SAP software cost: RM -IT Software for licensing (SAP): 1000000 Suggested solution: To implement of SAP completely in ATLAM, ATLAM management representative should consider negotiating with SAP management representative; in order to reduce the cost of license and customization. By this way, ATLAM will be able to implement SAP completely as urged by PETRA groups, and at the same time, it able to help ATLAM to reduce their high...
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...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 will be more efficient because SAP allow complex segmental reporting. However, the implementation is not as simple and involves change in work processes, culture and habits. The change is work processes and culture is difficult because employees already...
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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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