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Sap for Atlam Case

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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 system has brought another argument which is the department will have an issue on the equipment such as lack of PCs and space availability for the staff to practical the new system. Hence, all these arguments need to be solved in order to implement SAP for the accounting system.
2.1.2 Resistance to change
The next major issue in this case is staff resistant to change from the old

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