Systems integration and client server computing
With the increased dynamism in information and communication technology, organizations are forced to align their practices to the changing technologies in the market. Enterprise Resource Planning (ERP) has been adopted in many organizations and business settings over the past decade. The system enhances efficiency and effectiveness of service delivery and productivity in the organization. However, there are challenges faced by many organizations with regard to maintenance and upgrade of these systems.
The article examined a case study of an Irish company which adopted the Enterprise resource planning system. The organization was skeptical of upgrading the system after 12 years due to the demotivating factor of cost. Consequently, with the postponement of the system upgrade, the cost implication also increased over the years. Additionally, the lack of confidence in the newer versions of the ERP proved a major demotivating factor to the organizations to upgrade the existing system.
The view of the accountant’s role is similar in both cases. In both accounts, the accountant is a key member in the decision making cycle and procedure of whether to upgrade the ERP system or continue maintaining the existing system in an organization. The accountant is the sole generator of all financial information in an organization which include; recording of data on sales transactions, income, expenditure and calculation of profits and losses in the organization. They are also in charge of summarizing of financial and subsequent reporting for purposes of decision making in the organization. Data and information from the accountant is used by all departments including; sales and marketing, human resource and purchasing and supplies department to make vital organization decisions. In this case, both accounts have a similar view regarding the role of the accountant in the upgrading process. He is the one who provides the vital information needed for decision making. According to both authors, the major determinant for upgrading the system is the cost implication.Therefore, the information from the accountant plays a major role in the decision making.
According toSylvia, Ruth, & Liam (2013) there are several factors that negatively affect the upgrade of ERP systems in an organization. The cost implication for the upgrade is the major inhibitor to this process and it is common to many organizations. Majority have often postponed the upgrade and rather opted for routine maintenance of existing system due to the high cost implications. Additionally, the lack of confidence in the new system and the risk of disruption of business activities in the organization also affect the decision to perform an upgrade. However, the increased cost of maintenance, withdrawal of vendor support, the consolidation of resources, realization of benefits and a gaining of competitive advantage are motivating factors to upgrade the ERP in the organization.
On the other hand, Ellen and Bret (2012)delve in the evolution of the ERP over the years and the advantages and impacts it has had in several organizations. With regard to upgrading of ERP, Ellen and Bret (2012) acknowledge the fact that cost of implementation and maintenance is a major determinant. Additionally, he notes that if success in the upgrade and implementation of ERP is to be realized, training of users should be heavily considered. Therefore, the organization should factor in cost of training in the overall budgeting for upgrade and maintenance of the system. The ERP is viewed as a solution to many business problems by many organizations. The need for upgrade is further motivated by the need to conform to industry practice and laws and also to maintain a competitive edge in the market.
Ellen, F., & Bret, J. (2012). Concepts in Enterprise resource planning. New York: Cengage Learning.
Sylvia, D., Ruth, V., & Liam, S. (2013). Justification of an upgrade of an Entreprise Resource Planning (ERP) system- The accountant's Role . Global Journal of Human Social Science interdisciplinary, 17-23.