ISSUE 1 : Feasibility 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 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 familiar with the work scope they do every day and will face resistance to change. In addition, it is about change in