Sap Implementation at Akademi Laut Malaysia (alam)

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FACULTY OF ECONOMICS & MANAGEMENT

BACHELOR OF ACCOUNTING (HONOURS)

 EPPA4716 KAJIAN KES INTEGRASI

SET 6 SEMESTER 2 SESI 2017/2018

CASE REPORT

CASE 6 SAP IMPLEMENTATION AT ALAM

LECTURER                :         Prof. Madya Dr. AINI BINTI AMAN

GROUPMATES        :

1. SAHIDAH BINTI RAMLI                                        A147972
2. SITI NORATHIRAH BT MASROM                        A148275
3. NUR AIDA SYAHIRAH BT RAMLEE                        A148344
4. NURUL AIN BT SABRI                                        A148346
5. NUR EZREEN FARZANA BINTI ABDULLAH AZIZ        A149975

TABLE OF CONTENTS

EXECUTIVE SUMMARY        3

ISSUE STATEMENT        4

DATA ANALYSIS        5

ALTERNATIVE ANALYSIS        5

RECOMMENDATIONS        8

ACTION AND IMPLEMENTATION PLAN        11

EXHIBIT        13

EXECUTIVE SUMMARY

Akademi Laut Malaysia (ALAM) who was wholly owned by MICS Berhad and PETRONAS is an organization that provides training to Malaysia maritime industry. The maritime industry are involve in many wide activities that associate with the sea such as offshore energy, living marine resources and supporting service. Back in 1970s, there were neither a formally established Maritime Education and Training (MET) institution nor a properly established scheme for individuals aspiring to become seafarers with the merchant navy in the country. The only training provided ware from Port Authorities, the Marine Department and the Customs and Excise Department that only focused on operational requirements of their respective organizations only.

This has led to very poor computing facilities in ALAM. There were no sufficient and up-to-date facilities, the training in computer use and knowledge was minimal as well as virtually no modern maritime training and transport related software to use. Networked computing was unheard of since no network has been established. Staffs were having difficulties to even send out emails and to search the World Wide Web since there was only one PC connected to the Internet.

In 1997, due to the new introduction of new shareholders, efforts were taken to uplift ALAM to a reasonable level in respect of IT facilities and to develop and maintain the connectivity of existing PETRONAS’ facilities and system. It was December 2001 when the management finally decided to upgrade its accounting system with PETRONAS group called SAP. According to Zulkifli, the Manager of Finance Department, cost of installing SAP in ALAM was not the main concern but whether the personnel in ALAM were ready to embrace the new system and the new system should be ready for total cut-over from 1 April 2002.

PETRONAS has put together a team under the name SAP Business Support Team (SBS) to study and propose on how to implement and use the system. It consist of Project Steering Committee, Project Sponsor, Project Manager from SBS, Advisor who is the General Manager of SBS. Under the Project Manager were team members from ALAM and SAP Business Support. Team members from ALAM consisted of User Project Manager, User Representatives and Functional Analysts.

ISSUE STATEMENT

Computing facilities in ALAM were in a very poor state. It does not have a sufficient and up-to-date facilities as well as virtually no modern maritime training and transport related software to use. Networked computing was unheard of since no network has been established that led to absence of computer based software and the distribution and sharing of electronically.

SAP quite costly because ALAM will need to form SAP Business Support Team consists of expertise person, which means ALAM need to spend more money suitable with the position given. There might be a lot of costs that need to be included in this project such as cost of software, user training and license fees because it is a huge implementation. In addition, cash flow for December 2001 was deficit and it might be a burden for this organization to cover the cost.

Aside from that, time constraint is another concern to implement a new system since the decision to upgrade with PETRONAS group-wide SAP system was in December 2001 and the system should be ready in April 2002.

Since SAP is a new system, ALAM has another concern whether the personnel in ALAM were ready to embrace the new system or not. Some staff also afraid that their positions might be cut off to save costs. Staff need to learn and be familiar to the system to make sure they can do their own job using the system.

Another issues in order to uplift ALAM to a reasonable level in respect of IT facilities is about system maintenance and support the application its self. Either ALAM implement ACCPAC or SAP system, they must take consideration regarding system maintenance and support. They should know the advantage and disadvantage when implement the system  in term of system maintenance and support also.

DATA ANALYSIS

There was a study conducted on ALAM in 1997 by the World Maritime University and it has concluded that ALAM was deemed to be left behind when compared to other Maritime Institutions in Europe and Japan in terms of IT facilities.

Based on the analysis that had been done, the data show that some of the cost can be covered up after a few years because in the beginning of implementation, losses occur because it still in the trial and need to rectify when the system had been tested. On top of that, the cost for staff training also need to take as the consideration because some of them did not know how to use the system. So, the company will expense a huge amount in order to train their staffs to make sure they know to use it and can understand the system very well, so that their job will be more easier.