Akademi Teknikal Laut Malaysia (ATLAM) is a wholly owned organization of MICT Berhad. The management of ATLAM had been asked to upgrade its accounting system with the PETRA group-wide SAP system. The person who is responsible to the changes of the accounting software is Zulkifli Osman, the Finance Manager of ATLAM. He had to severely assess the risks associated with the decision. The main problem arises is not on the cost of implementing SAP or Systems, Applications and Products in ATLAM but rather on the acceptance of the new system by the ATLAM’s staff.
The conversation between Zulkifli and Sani, the Project Manager; Gopal, the User Project Manager; Lim, User Representative; and Kamal, the Functional Analyst has come to the several issues to be considered. Most of the issues arise are from Lim such as SAP is more suitable for manufacturing industry not education industry. Other issue is ATLAM is lack of equipment and facilities. According to Lim, the department does not have enough personal computers and if they have they do not have enough space available for the personal computer in their department.
Time constraint also one of the issue arise in the conversation. The management had decided to schedule the phases of proposed SAP on 1st of April 2002. They are now on third week of January. The time needed for implementing the new system usually takes number of months to be implemented. Lim also raises the issue of the resistance of staff to change to the new system. When people are more comfortable with some technology, they are likely to oppose changes. The reason of the resistance of staff perhaps because of fear the unknown and the uncertainty accompanying change such as losing their job and failure.
The other issue is costs of implementing the SAP system that can be consider as higher than the accounting package, ACCPAC. It consists of the annual license fee, training costs, customization work and hardware. The cost-benefit analysis has been