Erp System

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CHAPTER 1
INTRODUCTION

1.1 Background

In earlier, the primary process of the accounting software is basic bookkeeping transaction for business. Currently, the evolution and improvement of the information technology had transformed the accounting software into more advances and dramatically improve the software. With the improved accounting software, it enables many business organizations to process transactions for multiple corporate divisions and in foreign currencies as well as optimized their resources. At the same time, the business organizationableto customize the way in preparing financial reports with complex ratio analysis and forecasting functions more easily with the upgraded accounting technology (STRAND, BAGRANOFF, & SIMKIN, 2008). With the improvement of the accounting information system, business environment had become more complex asbusiness processes required to make timely and efficient procurement of product parts, accounting, management inventory and human resource and distribution of good and services and a lot of inter-departments data flow for decision makings. In addition, the innovation of the accounting software also helped management of organization to efficiently improve the competitiveness by cost reduction and better logistic management. the innovation of the system are universally recognized by most of the large and small-to-medium-size enterprises (SME) as the innovation had brought tremendously improvement and rewards to the organization in worldwide competitive business environment with complex business practices.

At the end of 1980 and commencement of 1990 the accounting information systemhad developinto another level as it became a part of integrated enterprise software which areknown as Enterprise Resource Planning(ERP) Systems. Theimprovements and that can be conveyed from ERP system had caught attention of many business organizations. Therefore, the objective of this research paper isdiscussingand identifying how does ERP System hasenhanceperformance of the business organization in fullsuch asthe architecture of the system, impact of the system to business processes,functionality,as well as therelatedadvantages and disadvantages.

But, it is not easy tasks for business organization to transform to a new accounting information system and it can be a challenge. Business organization needs to upgrade in order to maintain their market share in the highly competitive business environment. Selecting the greatestset of accounting information system software in order to fitting and comply with the existingbusiness process and requirement that the business desire could be challenging tasks and it is likely to affect the bottom line. Analysis of the challenges may face by business organization during the period of the implementing the ERP system will be discuss in this research report.

In order to obtain the sufficient information and produce an accurate and reliable research, it is important to get information from various sources. In this research, most of sources of information can be obtain from secondary data such as case studies which prepared by other researchers as well as reference books from different libraries as well as magazines. Besides that, in order to obtain the practical experiences by the users of the enterprises resource planning system, interview will also conduct with chosen large and small companies that currently employed the system. It will enable this research to obtain the actual benefits and problem faced by the companies before and after implemented the system and the challenges that arose during implementation.

1.2 Problem Statements

The objectives of this research paper areanalyzedas well as explore the associated effect after implemented the ERP system and the obstacles that the business organization mayencounter. In order to provide reliable and accurate conclusion about the ERP System,there are many studies and analysis...
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