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.
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.