Question:
Discuss about the Implementation Of ERP And Accounting Software Application.
The aim of this report is to provide concise and evidence proof report on the implementation of ERP and Accounting Software application packages within the organization by the means of this literature review. Macquarie group has been considered for this case study as it will provide better and practical situations for this implementation. This report also emphasize on the beneficial aspects and disadvantages of these implementation into the system and their effect on the employees and the organization.
It has a non-hierarchical organizational structure among which there are five sub-divisions of the management team, which can be listed as: a central group of managing director, global chief operation officers, The Executive Committee, Heads of important operating groups of Macquarie including the Head of Risk Management (Macquarie.com, 2017). It can also be said that the Macquarie group has been restructured into a NOHC (non-operating holding company) structure, which is being approved by the Federal Court and security holders. Following is a better picture for the organizational structure of Macquarie:
There are certain disadvantages of this organizational structure which can result in deficiency of expected outputs. Following is the list of problems that might occur in this organizational structure:
Proper scheduling management is not introduced in the organizational structure of the Macquarie group (Macquarie.com, 2017). Schedule management could help the manager or the leader to predict the next situations and behavior of the employees towards the projected goal of the organization. Leadership role within the organization is the first step towards achieving the projected goals, this implies in better leadership by the team leader or the manager in order to accomplish the aims and goals of the organization. The decision making and the leadership role direct affects the operations of the organization and if any leader or manager lacks in either of the qualities might stop the enhancement of the organization and the milestones will not be achieved (Macquarie.com, 2017). Another problem stated above was the corrupting effect of power, which emphasis on the misuse of the authority and power provided to a manager or the leader within an organization.
Enterprise Resource Planning (ERP) is the most advanced and technologically advance approach that could help in gaining the competitive advantage among the competitors. This includes Data acquisition implication, cloud storage of the information and data, and computerizing the whole operational activities within the organization. Cwikla (2014) stated that data acquisition implication can be complicated for the production system, which is a not automated as compared to the organizations those have automated systems, which includes almost every sector within the organization such as accounting, making bills, tracking shipments, deliveries and many more. Computerizing all the operational activities will need various changes in the infrastructure of the organization but this change could lead the organization towards efficient and effective outputs (Cwikla et al. 2015). Automated activities could help in easy and quick processing for the employees in better and efficient manner, as it is much more accurate and will not produce wrong results without human errors. ERP provides cloud storage for the data and information related to the organizational operation and other data (Rotham, Banon and Alonso 2015).
Implementation of ERP system into the existing system of Macquarie can help in gaining positive outcomes but can also lead to certain frauds that can affect the proper functioning of the organization. Marques, Santos and Santos (2014) discussed that these frauds can affect the organization directly and can lead towards the loss of reputation among the costumers and in the market. Frauds that could be possible due to the implementation of ERP into the system can be stated as any individual performing more than one or two activities that includes sector of purchased goods, goods received, invoice creation and transaction sector, purchase approval and purchased order confirmation can be able to make following frauds (Haynes and Li 2016):
Above frauds can be made by the employees those are involved in more than one sector as mentioned above and slow down the rate of growth of the organization for personal benefits. ERP implementation could give access to these frauds and the footprints could be disclosed by few attempts (Haynes and Li 2016).
Accounting software packages provides the organization to make all the transactional calculation in very easy and quick manner that can help in enhancing the efficiency of the employees by producing more outputs with lesser efforts. According to Mas et al. (2014) there are four types of ASPs, which are based on the characteristic of the management, characteristic of the business environment, characteristics of the technological innovation, and characteristics of the organization. IT (Information Technology) sectors are the most attractive and popular subject for the research due to the advancement in technology and movement towards digital world. Many researches and writings have been done related to the adoption of ASPs within the organization and their motivational factors about how the implementation can change the face of accounts within the organization (Kellner and Swihart 2014). This implementation does not need much disturbance in the infrastructure of the organization as, the services are being offered by third party, which in turn eliminates the cost of maintenance for this system. This system is spreading rapidly among the organizations.
The transactional process between the organization, clients, and the contractors can be supported and enhanced for the organization by the implementation of Accounting Software Packages into the system. It is specifically designed to help the accountant to manage the transactional activities in more accurate and efficient ways with no efforts. Kordecki and Bullen, (2014) recommended in their paper to implement CAS into the small and medium sized enterprises in manner to improve the accounting management system within the organization. Authors have also explained how this implementation has the ability to influence the accounting firms to be more accurate and efficient in their operational activities. Identification of the extra-ordinary capabilities of the accountants can achieved through implementing ASPs into the system. This completely justifies the statement: “until a problem does not arise, owner-manager will not discuss with accountants” (Mageto 2017). MYOB is the most dominant ASP in the market with maximum shares and is spreading in all over Australia including small, small-medium and Big enterprises.
There are many competitive advantages of implementing ASPs into the system firstly, anytime, anywhere access. This states that ASPs provides its clients access to the data and information related to the operational and transactional activities of the organization from anywhere connecting via internet (laudon and Laudon 2016). This enables the option for the workers to be engaged with the inter-operational activities of the organization by staying anywhere irrespective of the place. Secondly, it has greater input speed, which states that because of the automation process feeding or saving data or information input speed increases in much easy way with lesser efforts. This could help the individuals in focusing more towards the goals and objectives of the organization irrespective of the time that was being consumed during the calculation and data saving process (Ismail and King 2014). Third competitive advantage can be stated as greater efficiency, which can be stated as beneficial approach for maintaining the accuracy in estimation and calculation during the transactional process.
Besides of the advantages and disadvantages of the ASPs implementation, there are certain challenges that might oppose the system success. Security of the data and information is in the top of the list of the implementation. This could be better explainable by the examples of the data breaches that have become trend and most considerable subject of this new digital world. Most of the researchers have proposed that security is the greatest concern for any organization in context with the ASPs implementation into existing or pre-existing system. Emphasizing on this topic recent data breaches could be the best example for this situation. These are novice-friendly and proper training is needed in order to make the implementation successful.
Conclusion
Based on the findings made in the above report it can be concluded that upgrading the traditional method of business with ERP and ASPs can increase the productivity of an organization by enhancing the performance of the organization. This implementation will increase positivity among the employees as they will have to make less effort and integrating them within the organization will become easier. There are certain disadvantages and challenges that a user or client may face during or after the implementation of this system which have also been proposed in the above report.
The recommended software is the MYOB because of its benefits and fitting ability with all the organizations. Macquarie Group can enhance the performance by utilizing MYOB into its existing hierarchical organizational structure. It can provide all the beneficial operations related to the accounts in more efficient and less effort.
References:
?wik?a, G., 2014. Methods of manufacturing data acquisition for production management-a review. In Advanced Materials Research (Vol. 837, pp. 618-623). Trans Tech Publications.
?wik?a, G., Krenczyk, D., Kampa, A. and Go?da, G., 2015. Application of the MIAS methodology in design of the data acquisition system for wastewater treatment plant. In IOP Conference Series: Materials Science and Engineering (Vol. 95, No. 1, p. 012153). IOP Publishing.
Haynes, R. and Li, C., 2016. Continuous audit and enterprise resource planning systems: A case study of ERP rollouts in the Houston, TX oil and gas industries. Journal of Emerging Technologies in Accounting, 13(1), pp.171-179.
https://www.macquarie.com/in/about/company#?tab:company-profile-our-business-our-global-presence-tabs=1 [Accessed 14 Sep. 2017].
Ismail, N.A. and King, M., 2014. Factors influencing the alignment of accounting information systems in small and medium sized Malaysian manufacturing firms. Journal of Information Systems and Small Business, 1(1-2), pp.1-20.
Kellner, K.F. and Swihart, R.K., 2014. Accounting for imperfect detection in ecology: a quantitative review. PLoS One, 9(10), p.e111436.
Kordecki, G.S. and Bullen, M.L., 2014. Evolutionary developments in accounting standard setting for private entities and SMEs. Journal of International Business and Cultural Studies, 8, p.1.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.
Mageto, J., 2017. Accounting Softwares in Australia. An Overview.
Marques, R.P., Santos, H. and Santos, C., 2014, June. Management of internal control mechanisms in ERP for continuous monitoring purposes. In Information Systems and Technologies (CISTI), 2014 9th Iberian Conference on (pp. 1-6). IEEE.
Mas, J.F., Kolb, M., Paegelow, M., Olmedo, M.T.C. and Houet, T., 2014. Inductive pattern-based land use/cover change models: A comparison of four software packages. Environmental Modelling & Software, 51, pp.94-111.
Rothman, J., Bañón, J.A. and Alonso, J.G., 2015. Neurolinguistic measures of typological effects in multilingual transfer: introducing an ERP methodology. Frontiers in psychology, 6.
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