Enterprise Resource Planning

Accounting Information of Technology Assignment

Raissa Stephanie
023001801130

Universitas Trisakti
Fakultas Ekonomi dan Bisnis
Jurusan Akuntansi
Tahun 2019/2020

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Table of Contents
Complaints about ERP Consultant...................................................................................3
Advantages and Disadvantages of Big bang and Phased in Approach.............................4
Big Bang Approach.....................................................................................................................4
Advantages and Disadvantages of Big Bang Approach................................................................4
Phased In Approach...................................................................................................................4
Advantages and Disadvantages of Phased In Approach................................................................5
ERP Implementation were Failed.....................................................................................5
Sources..............................................................................................................................7

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Complaints about ERP Consultant

ERP systems is an integrated management of main business processes, often in real

time and mediated by software and technology. ERP usually referred to as a category of
business management software or mostly a suite of integrated applications that an
organization can use to collect, store, manage and interpret the data from many business
activities. ERP provides an integrated and continuously updated view of core business using
common databases maintained by a database management system. ERP systems track
business resource such as cash, raw materials, production capacity and the status of business
commitments orders, purchase orders, and payroll. The applications that make up the system
share data across various departments (manufacturing, purchasing, sales, accounting, etc.)
that provide the data. ERP facilitates information flow between all business functions and
manages connections to outside stakeholders.
From all of ERP capabilities that have been mentioned above, its also have some
failure about this system. There are so many factors that can make failure on the system like
the system are misfit, poor IT infrastructure, poor project management effectiveness, poor
consultant effectiveness and etc. In this case, let’s focus on complaining through ERP
consultant. These are several most common complaints about ERP consultant :
 Doesn’t provide clearly things related to the service qualifications is failure that
very often done by consulting service provider. This failure causes many clients
confused especially companies and middle-low businesses because mostly they do
not really understand exactly about the consulting services. If we put our
perspective as a client, we should know what are the greatest benefit will be when
we work together with a consultant.
For example, On Hershey’s Food Corporation they failed deliver their goods to the
retailers and lost $100 million because there is a miscommunication between the
employee on the company and the retailers while the company build up their
system with some help from the ERP consultant. The ERP consultant does not
saying things clearly yet how the system are going to be so there was a lot of
inaccuracy in their system.
 The cost of the services to make the system is way to expensive. The company that
want to use the consultant service to make a better system of their company should
have a lot of budget for building the system that meet their needs.
For example, Unisys Consultant on making Medicaid system could ended lost a
million dollars because this system should handle complain from health care
organization but there is design flaws on the system that made a lot of failed
payment and wrong claim process.

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Advantages and Disadvantages of Big bang and Phased in Approach

Big Bang Approach

The Big Bang approach is an approach that is carried out by implementing all
modules of ERP from all of the location of the project in the company at the same time. The
old systems are going to be stop when the new ERP system starts, where the readiness of the
users and the network must be available when the system is starting. Also in using this
approach the ERP application is implemented in every location at the same time. In this
approach, the timeframe of the system from the testing version to the actual system that going
to be use for the transaction logger in just a few days. Therefore in the big bang approach, an
intensive testing process is needed before do the final cut off the old system and using the
newest.

Advantages and Disadvantages of Big Bang Approach

Advantages of the Big Bang method:

o Does not require a temporary interface as an intermediary for new and old systems.
o Does not require maintenance on the old system.
o The use of a new system is required so that the old system can be completely
abandoned.
o Less time needed for implementation.

Disadvantages of the Big Bang method:

o More labor is needed for implementation.
o The risk of system failure is higher.
o Unable to move to the old system at any time.
o The time between development and implementation is longer.
o The project leader cannot show the performance results of the ERP system until all
modules are implemented.

Company that may suit with this approach :

o Small companies and low levels of business process complexity.
o Flat organizational structure and low level of control.
o Low number of modules and low module change rate.

Phased In Approach
When the company chose to use the Phased In approach, the modules are
implemented one by one or in groups of modules which are generally carried out in one
particular location. This approach is a series of implementation sequences that consists of
designing, developing, testing and installing different modules. Unlike Big Bang, Phased In
requires special attention and care for the old system with the aim of facilitating integration
with the new system.

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Advantages and Disadvantages of Phased In Approach

The advantages of the Phased In Approach:

o Not so many labor needed for implementation.
o The labors can be concentrated in certain modules.
o Smaller risk
o We can use the old system if needed
o The timeframe between development and implementation is not long.
o The project leader can demonstrate the success of module by module implementation
in the ERP system to the management.

Disadvantages of the Phased Implementation method:

o Requires a temporary interface.
o Longer installation.
o Have to take care of the old system.
o Tendency to return to the old system.
o High level of risk from team members leaving or changing.
o The operation of the old system provides an opportunity to inhibit the new ERP
system running.

Company that may suit with this approach :

o Large companies and high levels of business process complexity.
o Tiered organizational structure and a high level of control.
o Large number of modules and high module change rate.

So from all of the explanation above the company could pick one of the approach that they
want to implement in their company by considering the size and complexity of the company,
the level of hierarchy and supervision of the company and readiness and support from all
over the management.

ERP Implementation were Failed

When ERP implementation fails, an ERP expert witness and project recovery practice is often
tasked with the need to identify who is at fault in a failed ERP implementation. This is never
an easy question to answer, as a host of stakeholders contribute to the success or failure of a
project. Depending on the situation, it may implementation strategy or the client firm it all
can be at least partially blame. Even the software manufacturer could be at fault. In some
cases, it is a combination of both. Regardless of who is at fault in an ERP implementation,
there are a number of key lessons that we have learned from helping with ERP lawsuits and
project recoveries:
 Technical projects typically don’t succeed, but business transformations do. 

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 Unfortunately, most CIOs are more comfortable with technology than they are
business. The most successful ones, however, treat their ERP implementations as
business transformations rather than technical installations. After all, implementing
new ERP software is much more complex and has more impact on the business than
say, a Windows upgrade or antivirus software rollout. When compared to a more
basic technical installation, ERP implementations have a bigger impact on employees,
business processes and the overall strategy of your company. Be sure to plan and
execute your project accordingly.
 Unrealistic expectations from ERP consultant and sales reps can kill your chances of
success before the project begins. 
Starting a project with unrealistic expectations is often the first domino to fall
in an ERP failure. When an ERP consultant or sales rep lowballs the implementation
cost or duration, it leads to a host of bad decisions later. Corners will need to be cut,
additional money and time will be requested and key employees will most likely be
fired. It is critical to start the project with a realistic implementation plan and budget.
Remember that it is not the job of ERP consultant to manage your expectations – it is
your job to understand what it will really take to get the job done right.

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Sources
Hall, James.A. Accounting Information System. 2011. Seventh Edition. Mason:Cengage
Learning.

https://solutiondots.com/blog/advantages-and-disadvantages-of-erp-system/

http://wikipedia.com

http://zif.wzr.pl/pim/2016_1_3.pdf