Table of Contents 1.0 Introduction 1 2.0 Problem Statement 2 3.0 Feasibility Analysis 4 4.0 Capital Budgeting Analysis 8 4.1 Initial Investment 9 4.2 After-tax Cash Flows for Years 1 through 6 10 4.3 Payback Period 11 4.4 Net Present Value (NPV) 12 4.5 Internal Rate of Return (IRR) 13 5.0 Gantt Chart 15 6.0 Is Termination Lim is a Right Decision? 17 7.0 How to Overcome Staff Resistance 18 8.0 Conclusion 20 1.0 Introduction Akademi Teknikal Laut Malaysia (ATLAM) was established on 15 August 1981 as to train and prepare Malaysians for the maritime industry which was located in Melaka and Terengganu. ATLAM was wholly owned organization of MICT Berhad. Based on the study conducted in 1997 by the World Maritime University, they …show more content…
Most reasons are their lack of information about SAP system and also lack of knowledge about this system. This is, creating the misunderstanding between Lim and Zulkifli. Lim understanding is SAP system is only suitable for manufacturing industry and this system was costly compared to ACCPAC. In other hands, ATLAM is resistance to change because they are facing the lack of resource to implement SAP system which are need a lots of funds, equipment’s, spaces, and intelligence resources. The project team members were complaint they are not enough Personal Computers in the departments to make this practical to them. Then they do not even have the space available to house the system, some of the employee in ATLAM have never used a Personal Computer before and lack of the knowledge about information technology. Furthermore, employees are also fear of loss power when change the system in ATLAM operation. For information, ATLAM is a PETRA subsidiary and has to link its system to PETRA’s to match with their group reporting structure. Due to this reason, ATLAM’s employees are fear of loss of the power to control the system operating and their old job also will be separately divided to each other’s. They are worried that may change their role and responsibilities. 3.0 Feasibility Analysis First of all, we can found that most of the information system project has budgets and deadlines. For ATLAM, it is not exception. Assessing project feasibility is required for the
This process reduced not just customer’s satisfaction but also profit; there is a need for a financial information management to integrate all their business processes. SAP (System Applications Program) was introduced to the company to ensure efficient communication among the different modules of the business process.
The IT staffs were certain that the existing SAP software will provide all necessary computer support. They believed that even if the SAP would not fit their business processes precisely, it may be an investment that provides greater long-term flexibility and better solutions to the company’s problem.
The team members are still operating under the old attitude, that the equipment, sells itself and that the customer will do all the integration of the products into their operations. The notion of helping the customers from initial call through implementation and use of the system is still quite unknown to many of them. Customers are more particular about the service/product, and looking for complete system solutions, more customized software, and more value-added services.
The initial cost of the project will be the sum of the development, project administration, implementation, and financing functions. Development cost include IT system design, process planning, and feasibility analysis. Hardware upgrades, software development, infrastructure improvements are included in the implementation costs. Administration expenditures cover other costs such as training, furniture, network infrastructure, utilities, and insurance. Kudler expects to use this system for a prolonged period of time; therefore, the cost of the life cycle will need to be calculated also. Furthermore, the benefits of worker productivity gain, expenditure decrease, and employee utilization gains will also be calculated in the economic feasibility analysis. Once the initial cost of the project is determined, feasibility can be determined on the economic level. According to article, “Implementation: The operational feasibility perspective”, operational feasibility will be achieved if the following steps are followed. Step 1, managers and employee negative perceptions of change must be addressed openly. Step 2, positive factors for change must be reinforced. Step 3, the highest stress should be dealt with first. Step 4, change must start at the top of the organization. Step 5, informal and formal lines of communication should be used. All managers and workers should be involved or represented in the design.
This course provides the foundation for successful project planning, organization, and implementation within the realm of information technology. The course uses real-world examples and identifies common mistakes and pitfalls in project management. Topics covered include project scoping, estimating, budgeting, scheduling and staffing, tracking and controlling, and software tools for project management.
Full implementation should be completed in six months. The boundaries are the human resource system. Crossing over into design or inclusion of other departments such as accounting or sales would be out of scope. The business requirements are that the system is to be a single system instead of the multiple tools they are using now. The other business requirement is more vague, only stating that they would like to take advantage of more sophisticated, state-of-the-art technology. Project feasibility is determining if the technical, economical, and operational factors of the project can be accomplished under the schedule given. Technical looks at what hardware and software are available compared to what the requirements of the project are. Economic compares the cost of the overall project to what is budgeted and what can be justified by potential financial returns. Operational factors examine if the system will receive support from the people that use it and make it work (“System Development Life Cycle”, 1998).
One of the first steps involved in carrying out a preliminary investigation include understanding the problem or opportunity in sight. The analyst must first identify which department, users and business processes the system request is involved in to evaluate and assess the causes and effects related in the proposed system. Defining the project scope and constraints is the second step. With clear indications of the projects boundaries or extent the project scope is determined, while the requirements or conditions the system must confer to or achieve determine the projects constraints. The third step in a preliminary investigation consists of fact finding techniques, that involve the analyses of charts, interviews with users, managers and review of documents , observing operations and finally user surveys. Followed by the fourth step that includes the process of evaluating feasibility. This step consists of evaluating the feasibility of the proposed projects operational, technical, economical and
I feel that the changes made in SAP will stay in place for years to come. Now that steps have been gathered to analyze large amounts of employees, customers, and sales data being generated by companies it will enable SAP to create new processes and applications that will strength
Organizational change is a very critical and yet very inevitable process ofan organization’s structure. It can create a lot of pressure from the workers as well as management as a result of fear of the unknown.
In order to alleviate its server capacity constraints, speed its data retrieval process and reduce the number business systems used, Williams-Sonoma should upgrade to Windows 2000, purchase new servers and implement the SAP program. SAP is a customized program package that integrates a company 's supply chain. It 's primary function is the ability for order management, sales and distribution to communicate electronically with the financial systems and controls by providing real-time information for decision making. The system is fast, user friendly and most importantly real-time. It is beneficial because it reduces human error, improves productivity, improves data
Many employees believe that change will diminish their powers. Managers in particular feel this the most, (Rue, 2014) For instance there may a new computer system
In addition, because of the powerful SAP system, the employees could track inventory, compile financial reports, tag products to fulfill customers’ orders, and precisely control production down to the level of telling bakers the number of bagels to cook every day and what temperature to use. Managers can “see into” the order and fulfillment process at any point to identify problems. Alerts are programmed to automatically alert managers to emerging problems. So to speak, it connects online customers to inventory, billing, and then to truck delivery.
Since R.Ryan Nelson’s conclusions (2007) are based on the persuasive research report and many typical case of IT projects that have great bad side-effects or loss, his suggestions convinced me a lot. I will following R.Ryan Nelson ‘suggestions (2007) in the following ways:
Systems projects that involve many departments will require a committee rather than an individual to approve them. The first step requires a proposal regarding the project. The plan entails the problem and its significance to the organization while giving alternative solutions (Kendall, Kenneth, and Kendall, 2006). It also analyzes the possible use of a computer to solve the problem while acknowledging the people interested in using the system. When the right people approve the project, then it is developed.
This was due to the delay of the release of the final version of the new law by the Indian government and the delay in release of required changes from SAP India. With this in mind, the team had to work simultaneously on several alternative solutions.