Enterprise Systems Implementations and Integrations

1. Investigate the process of implementing and integrating an Enterprise

System in organisations. Identify what options are available for
implementation.
2. Discuss the challenges, benefits and risks with Enterprise System adoptions
for accounting and financial management.

Analyse one successful implementation and one unsuccessful implementation and

identify at least one key factor that contributed to the outcome

You should critically analyse:

• the way in which your topic is likely to change the role of accountant
• the skills and expertise which should be demanded of newly recruited
accountants, and developed in the existing accounting department
• the broader effects on organisations as a whole and society in general
• ultimately, you should make a recommendation on whether an organisation
or specific industry might benefit from implementing this technical trend
➢ Process of implementing and integrating an Enterprise System:

There are five stages to the systems development life cycle: investigation, analysis,
design, implementation and, finally, maintenance and review. Investigation is aimed at
identifying any problems with the current system. Analysis develops potential solutions
to the identified problems and evaluates them based on their feasibility. The design
stage prepares a logical and physical design for the newly proposed system and
culminates in the preparation of a returned vendor proposal (RFP). The RFP is assessed
by the organisation and a final vendor selected. This leads to the implementation stage,
which relies heavily on the role of user training and education. Implementation can
occur using a direct, parallel or phased approach. Once implemented, a system will be
monitored for any errors or problems in its operations, as well as being improved with
new features.

调查、分析、设计、实施，最后是维护和审查。调查旨在识别当前系统存在的任
何问题。分析阶段针对已识别的问题提出潜在解决方案，并基于其可行性进行评
估。设计阶段为新提出的系统准备逻辑和物理设计，最终以准备返回供应商提案
（RFP）告终。组织对 RFP 进行评估，并选择最终供应商。这导致了实施阶段，
该阶段在很大程度上依赖于用户培训和教育的作用。实施可以使用直接、并行或
分阶段方法进行。一旦实施，系统将被监测以检测其运行中的任何错误或问题，
并通过添加新功能进行改进。

Organisational strategy needs to be the basis for evaluating systems development

project ideas. A system that does not meet an organisation’s strategic priorities can
distract it from doing the things it does best and will weaken the distinctive nature of
the organisation. The notion of organisational fit between what the system does and
what the organisation aims to do is important.
➢ Alternative approaches to systems development

Prototyping is a development approach that makes strong use of users in evaluating

models of the proposed system. This allows for a user-friendly system and for high
consultation between user and designer, helping reduce potential resistance to a system
once it is introduced. The prototyping approach centres on the concept of building
models and allowing users to experience these models and provide feedback on their
operation and suitability. This can be advantageous in situations where the users know
what they want but are unable to clearly communicate it to designers, or where users
think they know what they want but are not sure.

原型是一种开发方法，充分利用用户来评估所提出系统的模型。这允许创建用户
友好的系统，并在用户和设计师之间进行高度咨询，有助于减少系统引入后潜在
的抵制。原型方法侧重于建立模型，并允许用户体验这些模型，并提供关于其操
作和适用性的反馈。在用户知道他们想要什么但无法清晰传达给设计师的情况下，
或者用户认为他们知道他们想要什么但不确定的情况下，这可以是有利的。
Agile/adaptive methods use small spiral cycles to develop systems; users and
developers work in conjunction under these approaches. Alternative approaches lack
overall systems objectives and outputs against which the new system can be measured,
but are gaining popularity due to their flexibility. Agile/adaptive methods involve short
team-based efforts whereby a small amount of functionality is built, designed and tested
at a time. These methods aim to reduce the risks of the long systems development life
cycle by using shorter, smaller steps. The overall project, as it is attempted in small
pieces, may be fluid to changes in requirements.

敏捷/自适应方法使用小型螺旋周期来开发系统；在这些方法下，用户和开发人
员共同合作。替代方法缺乏整体系统目标和新系统可以衡量的产出，但由于其灵
活性而变得越来越受欢迎。敏捷/自适应方法涉及短期团队协作的努力，每次只
构建、设计和测试少量功能。这些方法旨在通过采用更短、更小的步骤来降低长
期系统开发生命周期的风险。整个项目，因为它被分成小块尝试，可能会对需求
变化具有较强的适应性。

Software development options available to smaller businesses:

SMEs usually work with pre-developed programs, rather than undertaking to develop
and test a unique product in-house. Pre-developed accounting packages come in two
forms — mid-range packages, which are modular and allow a reasonably significant
number of options for each feature, and simple packages, which allow fewer options
but are much cheaper. Organisations looking to change their software systems should
consider the following selection process: identify the company’s needs, survey the
market, identify a shortlist, arrange a demonstration, and decide and implement.

中小企业通常使用预先开发的程序，而不是自行开发和测试独特的产品。预先开
发的会计软件包分为两种形式——中档软件包，具有模块化特性，允许每个功能
有相当多的选项，和简单软件包，选项较少但价格更便宜。希望更改其软件系统
的组织应考虑以下选择过程：确定公司的需求，调查市场，确定候选名单，安排
演示，然后进行决策和实施。
➢ Challenges

1. Complexity: Implementing Enterprise Systems (ES) can be complex, involving

significant changes to existing processes and IT infrastructure.
2. Cost: ES adoption can be costly, including expenses for software, hardware,
customization, and training.
3. Data Migration: Transferring historical financial data to the new system
without errors is challenging.
4. User Resistance: Employees may resist using new systems, leading to
productivity losses during the transition.
5. Conflict: Conflict is disagreement between individuals, groups or organisations.
While conflict is widely viewed as positive for an organisation because it
promotes diversity of opinion and open discussion of ideas, it can also have
devastating effects on the organisation.
6. Escalation of commitment: has been extensively researched in the
management accounting area and refers to an increased level of commitment
towards a project that has previously been chosen and that is not progressing as
expected and that should be abandoned or redirected
7. Technical skills: The systems development project requires a mix of technical,
people and process skills. Process skills refer to knowledge of how the business
operates, what is done and who does it. People skills refer to the ability to
manage different groups of people, assimilate differences of opinion and
manage conflict towards a workable solution that benefits the project as a whole
(conflict was discussed in an earlier section as an aspect of systems
development). Technical skills refer to the ability to perform the tasks required
in developing and implementing the system within the organisation.
Organisations undergoing systems development need to assess the capabilities
that they have within the organisation. There may be instances where the
proposed systems development is beyond the skills and expertise of the staff
within the organisation, in which case they should look towards help from
outside the organisation, such as consultants or those with the relevant expertise.
Acknowledging a deficiency in skills and rectifying it early can be important in
the progress of a systems development project.
 8. Interpersonal skills: Interpersonal skills are essential in any systems
development effort. These skills come to the forefront as systems development
efforts can involve people from a wide range of backgrounds and levels
throughout an organisation working together on the one project. The perspective
of the IT personnel or the programmer may be very different from that of the
end-user of the system.

➢ Benefits:

1. Efficiency: ES streamlines financial processes, reducing manual tasks and

errors.
2. Data Accuracy: Integrated ES solutions improve data accuracy by reducing
manual data entry.
3. Real-time Reporting: ES provides real-time access to financial data, enabling
better-informed decision-making.
4. Scalability: Many ES solutions are scalable, allowing organizations to adapt to
growth and changing needs.

➢ Risks:

1. Data Security: Storing sensitive financial data in an ES requires robust security

measures to prevent data breaches.
2. Vendor Reliability: Relying on third-party vendors for software and support can
pose risks if the vendor experiences issues.
3. Customization Pitfalls: Over-customization can lead to complex and hard-to-
maintain systems.
4. User Adoption: Resistance to change can result in poor user adoption, reducing
the benefits of the ES.

➢ Changing Role of Accountants:

ES adoption shifts the role of accountants from data entry and reconciliation to data
analysis, interpretation, and strategic financial planning. Accountants become more
focused on providing insights from the real-time data generated by ES.
➢ Skills and Expertise:

✓ Skills and Expertise for Newly Recruited Accountants:

1. Data Analysis: Accountants of the future should be proficient in data analysis.

They should have the ability to extract meaningful insights from the vast amount
of financial data generated by ES. This includes skills in data cleansing, data
mining, and statistical analysis. Data analysis helps accountants identify trends,
anomalies, and opportunities that can inform strategic decision-making.
2. Data Visualization: Data visualization skills are crucial for conveying complex
financial information in a clear and accessible manner. Accountants should be
adept at using data visualization tools to create charts, graphs, and dashboards
that enable stakeholders to understand financial data quickly. Effective data
visualization enhances communication and aids in decision-making.
3. IT Skills: With ES becoming an integral part of accounting and financial
management, accountants must have a good understanding of IT systems and
software. They should be comfortable working with accounting software,
database management systems, and enterprise-level software. Basic coding
skills may also be beneficial for understanding system integrations and
customization.
4. Cybersecurity Awareness: Accountants should be aware of cybersecurity best
practices. They should understand the importance of data security and privacy
and be capable of recognizing and responding to potential threats or breaches.
Cybersecurity knowledge is essential in safeguarding sensitive financial data.

✓ Development of Skills in Existing Accounting Departments:

1. Training and Education: Existing accountants should undergo training

programs to acquire the necessary data analysis, data visualization, and IT skills.
These programs can be conducted in-house or through external training
providers. Continuous education should be encouraged to keep up with evolving
technologies and practices.
2. Cross-Functional Collaboration: Encourage collaboration between
accounting teams and IT departments. Accountants should work closely with
 IT professionals to understand system capabilities, troubleshoot issues, and
implement necessary customizations.
3. Change Management: Implement effective change management strategies to
help existing accountants adapt to their evolving roles. This includes addressing
resistance to change, providing ongoing support, and emphasizing the benefits
of using ES.

➢ Broader Effects:

ES adoption improves organizational efficiency, decision-making, and financial

accuracy. It can also lead to cost reductions and competitive advantages. However,
it may displace some traditional accounting tasks.

➢ Recommendation:

ES adoption is beneficial for organizations aiming to streamline financial processes

and enhance data accuracy. Industries such as manufacturing, retail, and finance
can benefit significantly. However, it requires careful planning, customization, and
change management to maximize benefits and mitigate risks.