Preview

SAP Report

Powerful Essays
Open Document
Open Document
1278 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
SAP Report
INTRODUCTION

Issue 5: Problem on SAP Software
Another issue arising from the implementation of SAP is regarding to the software itself. From the case study, ATLAM aware that the implementation of SAP involved unique risks and challenges especially on the security issue. They have to ensure that the access to the software is in a tight security protection. Therefore, in order to do that ATLAM need to allocate each user with one ID per user per task for the use of internal control and audit purposes. However, Lim as a User Representative mentioned that the security issue will cost a lot and they will have to cut a lot of cost in many aspects.
Apart from that, SAP database also centralised across all PETRA subsidiaries where there is a problem in dealing with centralised data in that massive volumes of data. As a result, it might like to a traffic jams with the thousands of users using the system at the same time. Due to this problem, there’s also a possibility of losing data when all transactions going on at one time. Gopal as User Project Manager worried that the system will crash if there is no back-up plan made. Zulkifli agreed with Gopal’s opinion and will take this matter into consideration later.

Initial Investment
Initial investment also called as initial outlay is an immediate cash outflows that required by company to start a project. Calculation of initial investment is important to determine how much cost is needed to run a new project. The following are the calculation of initial investment that will be incur by ATLAM in the implementation of SAP as obtained in the case study:

CASH OUTFLOWS:
RM
Hardware
2,000,000
Initial software license
1,000,000
Training costs
1,271,550
Customisation work
72,840
Initial Outlay
4,344,390

The initial investment that will be incurred by ATLAM for the implementation of SAP is RM4,344,390. The investment cost is much higher and expensive than the implementation of ACCPAC.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    The company is reengineering the company’s Intranet/Information systems and enterprise resource planning (ERP) system. The upper management has chosen to implement SAP to connect all aspects of the company; accounting, manufacturing, aircraft services, supply inventory, and customer resource management (CRM). Implementing this new information system (IS) will allow the different parts of the company to operate as one, by allowing the various modules in SAP to communicate and exchange data. SAP will replace all of the outdated and splintered software the company currently uses by allowing easier communication between the departments and the programs that are used. The change was started about three years ago and will be completed in about two years for a total of five years to complete and be fully implemented. Connecting all of the different departments will save a tremendous amount of money for the company. Reengineering the IS systems will allow the sales department and customer representatives more easy access to the customer’s information, such as current and future orders, current aircraft service status or new aircraft delivery time; thereby increasing the customers value and customer…

    • 464 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Erp Definition

    • 8083 Words
    • 33 Pages

    This report aims at investigating the possibility of introducing SAP R/3 package to Joshua Arkwright & Sons (JAS), a medium sized, family run manufacturing company. It includes a detailed analysis of the strategic position, operational situation and current challenges of JAS, as well as the potential benefit that may rise from the implementation of SAP R/3 package, and other information relating to the implementing requirements and costs.…

    • 8083 Words
    • 33 Pages
    Powerful Essays
  • Powerful Essays

    Sap America Case Study

    • 1429 Words
    • 6 Pages

    In 1972 SAP was founded by four young software engineers who had come up with a concept for an integrated software package, and their current employer turned it down. This initial idea sparked their first major enterprise information systems product. This took their company public, and after five years SAP’s market capitalization was $15 billion. The expansion that occurred began in Walldorf, Germany where SAP was founding and spread to the America Group. This began in the late 1980’s and was crucial to the SAP’s growth. Once their overseas group took off, there were many elements of their business that needed to be altered and improved to account for their growth. Although they began as a product based company it was very clear to everyone involved that taking care of the client, through implementation and support was crucial to differentiating themselves from competitors within the market, and a key to their survival. The development of an industry strategy was another crucial action that paralleled the growth and support of SAP. This vertical industry strategy was to be delivered through industry centers of expertise (ICOEs), which to serve as a bridge between R/3 customers and the product development organization. This partnering was the key to SAP’s consistent growth, by using the manpower of outside and inside consultants.…

    • 1429 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    SAP is designed to work best by input of material movement as it occurs. The computers have been purchased and locations identified. Installation to occur in October…

    • 656 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Critique of Sap System

    • 991 Words
    • 4 Pages

    SAP ERP is an integrated enterprise resource planning (ERP) software manufactured by SAP AG that targets business software requirements of midsize and large organizations in all industries and sectors. More than 2,300 customers are using the latest version of mySAP ERP. It is a real-time process system which all the users log on the central platform server. There are many sub-functions of SAP including SAP ERP Financials, SAP ERP Human Capital, Management SAP ERP Operations, and SAP ERP Corporate Services. We only focus on the revenue cycle and expenditure cycle of the SAP system which is direct related to the accounting information system.…

    • 991 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Paper

    • 827 Words
    • 4 Pages

    For SAP implementation a project was devised where they identified 3 implementation problem areas cultural, business and technical difficulty.…

    • 827 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Chapter1+4-3=2

    • 582 Words
    • 3 Pages

    SAP’s common database supports all applications and consists of functional areas that include finance/accounting, manufacturing, sales, service, human resources, supply chain management and project management for all levels of Arizona Electric Power’s utility industry and addresses the needs of generation, transmission, and distribution. The inventory management module of SAP provides management with material stocks on a quantity and value basis, provides planning, entry, and documentation of all goods movement, and carries out the physical inventory.…

    • 582 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    You need to consider three factors in choosing a SAP module or for that matter SAP in the first place…

    • 736 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Company implemented the system in the direct way like they start using new system because old system which is did not work properly and not even too fast for the work and its going to be older which is the biggest problem for company. They facing problem in delivering business reporting and starting to falter.So Consrac decided to using the new system which stop breaking down and which is faster and more efficient than the older once.…

    • 453 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Sap Research

    • 2105 Words
    • 9 Pages

    Let us say you have a customer phoning to your company and looking for a specific product. The sales team then looks into the inventory department to check for the availability of the product. If the product is not there, the sales team goes to the Production Planning department to manufacture the product. The production team checks in the inventory department for the availability for raw material. If raw material is not available in the inventory, the production team contact the vendor to provide them with raw material. After the vendor provided the raw materials, the production team forwards the raw material to the shop floor execution for an actual production. Once ready, the shop floor execution team forwards the goods to the sales team who then delivers it to the client. The sales team now updates the financial department about the sold product. The production team also updates the financial department with payments to be made for the vendors. All departments now approach the HR department for any human resource related issues.…

    • 2105 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    Gilbert

    • 1990 Words
    • 26 Pages

    SAP University Alliances Version 2.3 Author Dave Haseman Ross Hightower Product SAP Mobile Platform Level Undergraduate Beginner Focus Sybase Unwired Platform © 2012 -2013 SAP AG, W.D. Haseman and R. Hightower Course SMP1 – SAP Mobile Platform Module M01 – Introduction Mobile Environment SAP Mobile Platform Mobile application Demo Mobile Curriculum SAP University Alliances SMP1 – SAP Mobile Platform M01 – Introduction • • • • • SAP Mobile Platform Mobile Environment SAP Mobile Platform Mobile applications…

    • 1990 Words
    • 26 Pages
    Satisfactory Essays
  • Better Essays

    SAP for ATLAM

    • 1526 Words
    • 7 Pages

    Lim worries that the response will be miserable and mentioned that SAP is impractical and almost impossible as they are lack numbers of PCs in department. There is major concern where some staff has never used a PC before where it indicates training for them will cost a lot and consume a lot of time. Zulkifli, manager of Finance and Accounting Department emphasized the use of SAP system will benefit the organization but Lim major concern is about adaptation of new system to the employees and perhaps for his own personal matters as well.…

    • 1526 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    Integration of business processes Better inventory control Better order tracking Better control on raw material pricing Availability of real-time information Streamlining of operations Single source of critical business information Centralized financial system Online tracking of inventory Minimizing manual efforts SAP Business One…

    • 1282 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    REPORT CASE 1 ATLAM

    • 2536 Words
    • 18 Pages

    The management of ATLAM provide full support to implement SAP to achieve their vision as 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 services to its clients. The use of SAP system seems would benefit the whole group of company with its integration features in SAP system.…

    • 2536 Words
    • 18 Pages
    Good Essays
  • Powerful Essays

    SAP Assignment

    • 1104 Words
    • 5 Pages

    SAP is the recognized leader in providing collaborative business solutions for all types of industries and for every essential market. SAP is the focus of today’s technology revolution, developing innovations that not only help businesses run like never before, but also improve the lives of people around the world. As the market leader in enterprise application software, SAP help companies of all sizes and industries operate better. From back office to boardroom, warehouse to storefront, desktop to mobile device, SAP empowers people and organizations to work together more resourcefully and use business visions more effectively to stay ahead of the competition. SAP applications and services enable more than 251,000 customers to operate profitably, adapt continuously, and grow sustainably.…

    • 1104 Words
    • 5 Pages
    Powerful Essays

Related Topics