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TABLE OF CONTENTS

INTRODUCTION.......................................................................................................................................1

ISSUES.....................................................................................................................................................2

ISSUE 1: INSUFFICIENT RESOURCES..............................................................................................2

RECOMMENDATION............................................................................................................................2

Feasibility Study.................................................................................................................................2

Cost-Benefit Analysis.........................................................................................................................5

ISSUE 2: TIME CONSTRAINT..............................................................................................................8

RECOMMENDATION............................................................................................................................8

ISSUES 3: RESISTANCE TO CHANGE...............................................................................................9

RECOMMENDATION..........................................................................................................................10

1. Education and Communication.................................................................................................10

2. Participation and Involvement...................................................................................................11

3. Facilitation and Support............................................................................................................11

4. Manipulation and Co-option......................................................................................................11

5. Explicit and Implicit Coercion....................................................................................................11

ISSUE 4: TERMINATION....................................................................................................................12

RECOMMENDATION..........................................................................................................................12

THOMAS-KILMANN CONFLICT MODE INSTRUMENT (TKI)........................................................12

CONCLUSION.........................................................................................................................................14

REFERENCES........................................................................................................................................15

1

INTRODUCTION

Akademi Teknikal Laut Malaysia (ATLAM) was established on 15 August 1981 which subsequently

privatized on 1 January 1997. In December 2001, the management of ATLAM, a wholly owned

organization of MICT Berhad, had been asked to upgrade its accounting system with the PETRA

group-wide SAP system. The proposed SAP system was scheduled to be phased in by 1 April 2002 as

the start of the new financial year.

SAP system was the system that included comprehensive functions of Financial Accounting,

Controlling, Asset Management, Sales and Distribution, Materials Management, Human Resources,

Plant Maintenance, Project System, BASIS system and so forth. Before the year 2000, ATLAM was in a

poor stated of technology. However, the privatization of ATLAM resulted in the introduction of new

shareholders and brought the academy into the fold of the PETRA Group of Companies, and it was

provided with better IT facilities. At the same time, all PETRA’s servers had to be consolidated to

leverage its group-wide PETRANET network system.

In accounting system, ATLAM was previously relied on a customized single-user system that solely

used to enter the accounting entries, but not functioned to produce financial reports. At this point,

ATLAM was looking for better alternatives to upgrade the accounting system. They were considering

the available alternatives; there were ACCPAC or SAP system.

Zulkifli Osman, the Finance Manager was critically assessing the risk associated with the decision and

he was going to have discussion with some of his members for this project. During the meeting

discussion, Lim and Gopal who were User representative and User Project Manager, were not so

consent to the implementation of SAP onto the factor of time constraint, insufficient of resources (fund,

expertise, facilities), subsequent problems in SAP system compared to the ACCPAC. However, Sani

and Kamal who as Project Manager and Functional Analyst, were quite agreed to the SAP system with

Zulkifli Osman. They were trying to analyze in various aspects to give solutions for the issues that rose

up, for instance, feasibility study, cost-benefit analysis, scheduling and so on. Zulkifli Osman also had

thought to kick Lim out from the group as he always criticized in the discussion. But is it a good deal to

do that?

At last, even though there are some conflicts of opinions within a project group, but indeed, they have

the intention to serve for the company own well. ACCPAC or SAP, it is just a system, the most

important thing the collaboration of the whole organization are well bonded to drive the ATLAM to a

better future.

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ISSUES

ISSUE 1: INSUFFICIENT RESOURCES

One of the ultimate and overriding issues that may face by ATLAM is insufficient resources in terms of

fund, facilities and expertise. Zulkifli believed that their efforts to implement SAP will involve unique

risks and challenges. In their first meeting Lim have mentioned the implementation process of SAP will

costly them a lot even though Petra group will provide leverage to them. Moreover, Lim claim that there

are shortage of PCs and space to install them in the department. Lastly, the personnel of ATLAM that

involved in implementation process did not have an extensive experience with the SAP. It is important

as knowledgeable team member can help to anticipate potential issue that occur onsite during

implementation. Those three problems should be consider by project team before proceed with the

project.

RECOMMENDATION

In order to evaluate the sufficiency of implementation of SAP system project, we are advised that

ATLAM could throughout feasibility study and cost-benefit analysis to evaluate and analysis the

valuable and feasibility of SAP system project in organization.

Feasibility Study

We suggest that ATLAM can throughout the Feasibility Study to assess and considered in a number of

areas for the SAP project, for example economic, operational, scheduling, technical and political.

a. Technical Feasibility

Assessing technical feasibility of ATLAM in implementation SAP System project would required

to identify and evaluate that whether SAP System will perform effectively, reliable and the

capability of resources to utilize SAP System. It will provide a discussion of relevant technical

risk factors and overall risk rating of the project. (Hoffer, George, and Valarich, 2011)

This analysis should include an assessment of the technical risk on SAP System that is

depending on four primary factors: project size, project structure, ATLAM development group’s

experience with similar system, and user group’s experience with SAP System development

projects and the application area. (Kirsch, 2000)

By using those project risk assessment factors to access the technical risk level of SAP System,

the result drawn that SAP System project has a medium risk. The conclusion is based on the

following findings:-

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1. Project Size

This project is reasonably large project for ATLAM, to be said, the larger the size of the

projects, the riskier the project is. (CHAOS Report, 1999) This is because the project will

impacted on entire ATLAM organizations. Almost 20 departments in ATLAM will involved, it

will give high stress to project team members which consists of five persons (Sani as Project

Manager, Gopal as User Project Manager, Lim as User Representative, Kamal as

Functional Analysts and Zulkifli as Finance Manager) to finish the project in shorter duration

time (second weeks of February until fourth weeks of March).

2. Project Structure

The requirements for SAP System project is highly structured and well define have a lower

risk. In fact, under the SAP system, it will provide an applicable system to ATLAM and to all

companies within the PETRA group. Even though there are user representative (Lim) whose

refuse to carry on the implementation of SAP system, it is still under control as the ATLAM

management have highly commitment through the system.

3. Development group and User group

The projects have a high risk as the development group and user group has low familiarity

with the application area of SAP System. However, conducting some training will reduce the

risk.

Medium risk of technical assessment of SAP project should be considered as acceptable to

ATLAM as refusing to take any risk will cause ATLAM couldn’t make the major

breakthroughs in innovative uses of systems. (Hoffer, George, and Valarich, 2011)

b. Operational feasibility

Assessing operational feasibility of ATLAM in implementation SAP System project is to gain an

understanding of the degree to which SAP system will likely to solve the business problems, or

take advantage of the opportunities or not (Hoffer, George, and Valarich, 2011). Also, we need

to assess whether the current work practices and procedures support a new system and how

the organizational changes will affect the working lives of those affected by the system (Jaffe

1967).

Lim argued that implementing the SAP System project may cause some obstructs and may

increase difficulty to the staffs in their day-to-day operation because the SAP System are likely

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to change in work process, culture and habits. This shows that SAP System have high risk

project to undertake in terms of operational risk as it have a significant and widespread impact

on ATLAM’s operation. Therefore, further analysis on the resistance to change should be

conducted to understand more in this area. Moreover, the existing operations and support

infrastructure of ATLAM cannot handle the SAP System, however with the support from PETRA

and appropriate training of the affected staff in ATLAM, then this project will operationally

feasible.

c. Schedule feasibility

Assessing schedule feasibility of ATLAM in implementation SAP System is concerns with the

duration of the SAP System project before it fully implement. The purpose is to gain

understanding of the likelihood that all potential timeframes and the completion date schedules

can be met and that meeting these date will sufficient for dealing with the needs of the

organization. (Hoffer, George, and Valarich, 2011)

This project is estimated to complete within 7 weeks. Gantt chart will be used to detail out the

project activities and the durations. In line with the scheduled activities, the resources such as

user, support infrastructure and etc should be available for feasible the project scheduling.

Therefore, project teams should firstly deal with the resistance of staff to change as claims by

Mr. Lim.

The time frames needed to implement the SAP System involved a number of months; however

the projects lack of time to met the completion date schedules. They have to evaluate the

scheduling risk such as the possibility on delivering improper functioning SAP System in order

implement the project on time. It is advisable for ATLAM to extend the implementation due date

of SAP System, since the cost is significant and the ATLAM’s staff shod be ready and prepare

well to embrace SAP System. An inadequate systems implementation will worsen the ATLAM’s

organizations.

d. Political feasibility

Assessing political feasibility is the process of evaluating how key stakeholders within the

organization view the proposed system.

The key stakeholder for ATLAM is it very own staffs, therefore the project teams cannot

excluded the user representatives and most important is to overcome the resistance of

ATLAM’s staffs to change. (Hoffer, George, and Valarich, 2011)

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Cost-Benefit Analysis

According to Gitman, L.J. (2009)., cross all capital budgeting analysis, the ideal evaluation method

should include all cash flows that occur during the life of the project,consider the time value of money,

andincorporate the required rate of return on the project. Therefore in our analysis, there is some part

of this consideration not able to be included as we have lack of information on their financial situation.

a. Initial Outlay

Initial outlay is the cost incurred to enter a project. To understand how much it cost to start and

run a project is imperative to determine the feasibility range. By including this in the initial cost

into project financial plan, it allows us to have better understanding on how profitable the project

will be. Based on data provided, below is the initial outlay that would incur by ATLAM in this

project.

As to guide the project implementation assessment this cost-benefit analysis has been released

as supplementary guidance material available to assure the project framework, and provides

practical guidance regarding the range of issues to consider when conducting a financial and

efficiency analysis of SAP project in ATLAM.

COST (RM): YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6

Average SAP license cost

- 150,000 200,000 225,000 250,000 250,000

Data conversion 100,000 160,000 180,000 560,000 600,000 640,000

RM

Software Licenses 1,000,000Hardware cost 2,000,000Training cost 1,271,550Customization work 72,840TOTAL RM 4,344,390

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costOverhead cost 300,000 420,000 490,000 560,000 600,000 640,000System maintenance and firewalls

60,000 120,000 130,000 140,000 150,000 160,000

Hardware expansion

- 260,000 300,000 340,000 380,000 400,000

Training 500,000 800,000 900,000 1,000,000 1,100,000 1,300,000

TOTAL COST 960,000 1,910,000 2,200,000 2,825,000 3,080,000 3,390,000

Savings(RM) :Accountant’s time and efficiency

- 400,000 800,000 1,200,000 1,600,000 2,000,000

Technical expertise cost savings

600,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,0000

Process and procedures cost savings

- 500,000 900,000 1,200,000 1,500,000 1,800,000

Working capital savings

900,000 1,200,000 1,500,000 1,500,000 1,500,000 1,500,000

TOTAL SAVINGS 1,500,000 3,300,000 4,600,000 5,500,000 6,400,000 7,300,000Net savings per month

540,000 1,390,000 2,400,000 2,675,000 3,320,000 3,910,000

NET SAVINGS- AFTER TAX(1-0.25)

405,000 1,042,500 1,800,000 2,006,250 2,490,000 2,932,500

Based on information provided and this cost benefit analysis, it is clearly shows the new system

upgrade is justified. The system will save ATLAM over half-of-a-million to RM3, 000,000 from

the first year to sixth year. Thus it will be no financial catastrophe result from SAP

implementation regardless of ATLAM who’s showing cash deficit in their December 2001 cash

flow statement.

Apart from this, we would recommend that Finance and Accounts Department in ATLAM to

evaluate more possible benefits and cost to assure the success of this analysis. Some of the

overlooked costs include floor space, insurance and utilities power consumption. Despite the

numbers that being discussed here, we also acknowledge that capital expenditure incurred by

ATLAM would be finance by PETRA group as their aim to consolidate PETRA’s entire server to

leverage its group-wide PETRANET network system. This means, decision on implementing

SAP into ATLAM also brings financial benefits to the institution.

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b. Payback Period

CIMA defines payback as 'the time it takes the cash inflows from a capital investment

project to equal the cash outflows, usually expressed in years'. Usually a company might

have a target payback, and so it would reject a capital project unless it’s payback period

were less than a certain number of years. Based on the cost-benefit and initial outlay

computed earlier, we would like to proceed on evaluating the time taken for this project to cover

its entry cost. To cover the weakness of payback period analysis, we will consider the timing of

cash flows within the payback period, the cash flows after the end of payback period and

therefore the total project return.

i. Present Value of Net Savings

(Assumed Interest rate as 10%)

Discount rate, r =

RM r PV

Year 1 540,000 0.9091 490,914 490,914

Year 2 1,390,000 0.8264 1,148,696 1,639,610

Year 3 2,400,000 0.7513 1,803,120 3,442,730

Year 4 2,675,000 0.6830 1,827,025 5,629,755

Year 5 3,320,000 0.6209 2,061,388 7,331,143

Year 6 3,910,000 0.5645 2,207,195 9,538,338

i. Discounted payback period

This is simply calculated by adding up the discounted net savings until they are equal to the

initial outlay. Despite ignoring the saving occurs after the payback period, it uses the savings

computed and considers time value of money. As in time value of money, the receipt of

money is preferred sooner rather than later. Money can be used to earn more money.

The earlier the money is received, the greater the potential for increasing wealth. Thus,

to forego the use of money, you must get some compensation.

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Recall the initial outlay is RM 4,344,390. Up to year 3, the accumulated saving is RM

3,442,730. It requires another RM 901,660 to cover the initial outlay.

To determine the remaining period:

= 3 + 901,660

1,827,025

= 3.49 years

*** So the discounted payback period for this project is 3.49 years.

ISSUE 2: TIME CONSTRAINT

What is constraint? According to Oxford Dictionary means something that limits your freedom to so

what do you want. Thus, time constraint issue related to ATLAM is about limited time that is ATLAM be

ready of implement SAP system to replace the old system.

From the case study, the ATLAM have just two month to go to complete total SAP system to their

company, 1st April 2002. As we know, the last meeting that held by ATLAM is 23rd January 2002 and

the next meeting will be held on fortnight, first week of February 2002. Therefore, ATLAM will start their

project by second week of February. The upgrading system of accounting is not as easy as Zulkifli

(Finance Manager) and Sani (Project Manager) have thought; due to ATLAM also face of scarcity of

intelligence source on implementing the project. Furthermore, the ATLAM need to provide training to

users. The full time training will takes about three weeks and more time will deliver to the users does

not have any basic in computer system.

Therefore, ATLAM essential to plan, organize, implement and control the project well by having the

guideline to ensure the project is succeed and it aids the group project illustrate how the project will

carried out.

RECOMMENDATION

We recommend ATLAM to use Gantt chart will assist ATLAM illustrate the whole project. What is Gantt

chart? A Gantt chart is visual aid in the management of a project then, will lead to the effective

communication. Gantt chart is a kind of bar chart, developed by Henry Gantt, which illustrate the start

and finish dates of the terminal elements and summary elements of a project. Terminal elements and

summary elements comprise the work breakdown structure of the project. (Pearson)

A Gantt chart is constructed with a horizontal axis representing the total time span of the project,

broken down into increments (for example, days, weeks, or months) and a vertical axis representing the

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tasks that make up the project (for example, if the project is outfitting your computer with new software,

the major tasks involved might be: conduct research, choose software, install software). (Rouse, 2007)

The common method to create Gantt is using project management applications such as Microsoft

Project, and Microsoft Excel. For economic cost, ATLAM also can use Microsoft Excel then it will not

bear any cost. On the other hand, ATLAM also can just design the Gantt chart by online and print it out.

An advantage by using Gantt chart is it gives clear illustrative of current status of project run by ATLAM.

ISSUES 3: RESISTANCE TO CHANGE

One of the main issues in this case are ATLAM facing resistance to change in develop a new

accounting system with the PETRA group-wide SAP system. Zulkifli Osman, Finance Manger concern

that whether ATLAM’s staff would be ready to embrace the new system.

We found that there are several reasons the ATLAM is resistance to change at that time. They are lack

of the good information about the SAP system. Due to no provided any briefing and information about

the SAP system, they do not even know how the SAP to run and implement in their workplace. They

are lack of the knowledge about the SAP system and its also cause the misunderstanding by the user

representative, Lim that SAP’s only suitable for manufacturing industry not in education industry.

Besides that, Lim found no reason why ATLAM must change the current system to SAP system. Before

that, ATLAM was overhauled its information technology (IT) facilities in 2000 due to privatization with

PETRA Group. He was thinks that there are no reason why ATLAM must choose to implement the SAP

system instead of ACCPAC which SAP system cause a high cost to implement.

TASK WEEK 2 WEEK 3 WEEK 4 WEEK 1 WEEK 2 WEEK 3 WEEK 4Organisation projectInvestigate current systemDetermine problem and feasibity study of SAPPilot testing and trainingDevelop solutionsPrepare analysis report

AKADEMI TKNIKAL LAUT MALAYSIA (ATLAM)

Friday, 1 February, 2002 Friday, 1 March, 2002

GANTT CHARTSAP syst em impl ement aTion

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In other hands, they are also fear of loss of security and power when change the system in operation.

ATLAM is a PETRA subsidiary and has to link its system to PETRA’s to match with the group reporting

structure. Due to this reason, ATLAM’s staffs are fear of loss of the power to control the system

operating and their authority will be separately divided to each others. They are worried that the

transformation may change their role and responsibilities. The SAP database is pretty much centralized

across all PETRA subsidiaries. This might be arises the problem of ‘traffic jam’ with the thousands of

users using the system at the same times. And it might be loss of security in dealing with centralized

data in that massive volume of data.

Due to the habit inside ATLAM and fear of the unknown, they are not willing to change to anything that

is not to be familiar with. A human being is not likely change in an unknown situation that might be

causes the bad influences and they are having a habit in their workplace that know well.

Furthermore, ATLAM is resistance to change because they are facing the lack of resource to implement

SAP system which are need a lots of funds, equipments, spaces, intelligence resources and etc to

support. The project team members were complaint they are not enough PCs in the departments to

make this practical, do not even have the space available to house the system, some of the staff in

ATLAM have never used a PC before and lack of the knowledge about information technology. They

also concerns in the cost to implement the SAP system that need a lots of funds.

RECOMMENDATION

If ATLAM decided to implement SAP system for their operation, the project team members should

ensure that there are several ways to dealing resistance change in the organization.

Here we are suggested several ways for ATLAM to dealing resistance change:

1. Education and Communication

ATLAM’s staff lack of good information or inaccurate information and analysis about the SAP

system. When staffs are not really bought into the rationale for any change, top management

could provide new skills and knowledge to them via a focused course of education. They might

be accepting once they realize why the change of system is needed in ATLAM and what

actually is needed of them. The project team members should have a well and proper

communication with the users of SAP system. It could help them realize what the problem is

facing by the users that cause them resistance to change in currently.

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2. Participation and Involvement

When people are not involved physically or intellectually, they are unlikely to be involved

emotionally either. The top management of ATLAM can getting their staff to involved and

participate in this project which is implement the SAP system immediately. Subordinates might

not know what the conditions or situation they are in if they are not getting into the

implementation. At the same time, the top management also gets fresh perspectives or idea

from subordinates which allow them to voice out their views about the SAP system. Most of the

users of SAP system are those subordinates to run.

3. Facilitation and Support

ATLAM’s staff resistance to change because there lack of facilities or resources support. They

are fear to do adjustment of problems. For example ATLAM is not enough space for allocate

PCs to all staff, so if develop SAP system, they might be share PCs or go to another department

to settle down their works. In order to solve this problem, ATLAM should proper allocate the

spaces, facilities and sufficient resources provided to staff. This actions show to ATLAM’s staff

the effort of top management that help to achieve and implement the goals together.

4. Manipulation and Co-option

This method will be use if where other tactics will not work, or are too expensive. Manipulation

means controlling staff’s environment such that they are shaped by what is around them.

However, it could lead to future problems or dangerous backlash if ATLAM’s staff feels

manipulated by the top management team in order to change that implement SAP system. This

tactics is necessary in the short them and all other avenues have been explored by the project

team.

5. Explicit and Implicit Coercion

Coercion is a method that even more extreme than subtle manipulation is overt coercion.

ALTAM’s project team should forced their staff down and make overt threats to them. For

example warning that if they do not comply or follow to implement the SAP system that they will

lose their jobs, perhaps in a humiliating and public sacking. Coercion is speedy the essence and

overcome any kind of resistance. In this case, the users representative, Lim was terminate from

the project team; he might be spread out the bad news about the SAP system. Top

management could use this method to overcome the resist to change.

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ISSUE 4: TERMINATION

In the case of SAP for ATLAM, Lim was having conflict on opinion with Zulkifli Osman when discussing

the matter of SAP system in ATLAM. Lim was disagreed to implement the SAP system in ATLAM as he

criticize there were tremendous factors such as time constraint, insufficient of resources (fund,

expertise, facilities), subsequent problems in SAP system compared to the ACCPAC. In the other hand,

Zulkifli Osman was very unsatisfied with Lim’s behavior and intended to kick him out of the project

team. Luckily, he frustrated idea had been hold by Kamal as Kamal advise him that the critical ideas of

Lim is good for organization since he was very experienced in such related industry. Zulkifli Osman was

advised to reconsider on the termination of Lim.

RECOMMENDATION

Insubordination is ranked at 4th in the top 10 reasons of employees get fired. (Doyle). However, why

employees will insubordinate within the team? It must have any reasons or conflicts existed. As same

to the case of SAP for ATLAM, Lim was having conflict with Zulkifli Osman in the SAP implementation

matter. Thus, how we could settle this kind of nervous matter?

When a team oversteps the mark of healthy difference of opinion, resolving conflict requires respect

and patience. (Resolving team conflict) We recommend that Zulkifli Osman must replace the negative

experiences with positive ones. The three-stage process below is a form of mediation process, which

helps him to resolve the conflict.

In stage one, it is suggested to prepare for the solution by acknowledge the conflict, discuss the impact,

agree to a cooperative process, and agree to communicate. In stage two, understanding the situation

by clarify positions, list facts, assumptions and beliefs underlying each position, analyze in smaller

groups and convene back as a team. In stage three, agreement is reached through the steps above. In

preventing conflict, the teams can be used such skill and behavior that very work on, such as dealing

with conflict immediately, being open, practicing clear communication, practicing active listening,

practicing identifying assumptions, not letting conflict get personal, focusing on actionable solutions,

encouraging different points of view, not looking for blame, demonstrating respect, as well as keeping

team issues within the team. (Resolving team conflict)

THOMAS-KILMANN CONFLICT MODE INSTRUMENT (TKI)

In TKI, there are two dimension that one person will along to, there are assertiveness and

cooperativeness. Assertiveness is the extent to which the individual attempts to satisfy his or her own

concerns. Whereas, the cooperativeness is the extent to which the individual attempts to satisfy the

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others person concerns. These two basic dimensions of behavior can be used to define five specific

methods of dealing with conflicts as shown below.

a) Competing

is assertive and uncooperative, a power-oriented mode. When competing, an individual pursues

his or her own concerns at the other person’s expense, using whatever power seems

appropriate to win his or her position.

b) Accommodating

is unassertive and cooperative - the opposite of competing. When accommodating, an individual

neglects his or her own concerns to satisfy the concerns of the other person; there is an

element of self-sacrifice in this mode

c) Avoiding

is unassertive and uncooperative. When avoiding, an individual does not immediately pursue

either his or her own concerns or those of the other person. He or she does not address the

conflict.

d) Collaborating

is both assertive and cooperative - the opposite of avoiding. When collaborating, an individual

attempts to work with the other person to find a solution that fully satisfies the concerns of both.

It involves digging into an issue to identify the underlying concerns of the two individuals and to

find an alternative that meets both sets of concerns.

e) Compromising

is intermediate in both assertiveness and cooperativeness. When compromising, the objective is

to find an expedient, mutually acceptable solution that partially satisfies both parties.

Compromising falls on a middle ground between competing and accommodating, giving up

more than competing but less than accommodating.

Thus, in this case, Lim and Zulkifli Osman are more to the mode of competing. However, if they learn

and know about these modes, they may switch it to the collaborating and compromising mode. Thus,

this will benefit to the ATLAM in operation especially in SAP.

In the nutshell, conflict is inevitable in an organization, it is seem how we look on the conflicts, is it a

positive or negative conflict? Some tips given to the team for conflict solving, there are defining the

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actual causes of the conflict, validating differences in perception and point of view, setting up and

getting agreement for a process you both will work through, listening actively and at last documenting

the resolution and the plan of action.(Resolving Team Conflict). Lim is expertise and as a good asset to

ATLAM, we are not suggesting Zulkifli to kick our Lim from the project team.

CONCLUSION

After we do for the analysis and evaluate the usefulness of SAP system project, we recommend that

ATLAM should implement the system as soon as possible. The implementation of SAP system would

be brings a lot of benefit and convenience for ATLAM in the long term view.

Even though there have a quite high risk to implement the system from the feasibility study, however an

organization should willing to take risk in order to gain more benefit in the future. Besides that from the

calculation of cost-benefit analysis, we found that the investment in SAP system save ATLAM over half-

of-a-million to RM3, 000,000 from the first year to sixth year. Also, the discounted payback period which

for this project only 3.49 years? It is one of the main reasons ATLAM should invest in SAP system.

To overcome the time constraint mention by Lim, ATLAM could use Gantt chart as a tool to guide the

procedures in implementation of SAP. Gantt chart also gives clear illustrative of current status of project

run by ATLAM. The resistance to change by ATLAM should faced it by using the 5 suggested ways

which are education and communication, participation and involvement, facilitation and support,

manipulation and co-option and the last but not least explicit and implicit coercion, these could help

ATLAM to change their current system to a advanced SAP system.

The last, we are disagreed that the action of Zulkifli Osman to terminated Lim from the project team due

to the conflicts that incurred during the meeting. He should resolve the conflicts but not simply terminate

Lim to avoid the conflicts. He can go through the 3 steps that we suggested above and by using

Thimas-Kilmann Conflict Mode Instrument (TKI) to overcome the conflicts. Lim should not be

terminated because he have a great experience in the industry and he enable to pointed out some

critical issues in the way to implement SAP system in ATLAM.

A good information system could help ATLAM drive better in the future. SAP system project should be

implementing by ATLAM in order to enhance the competitive advantages in the industry and also

growth smooth and advanced in the business future.

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REFERENCES

Gitman, L.J., (2009).Principles of Managerial Finance (12thed.). Boston : Prentice Hall, Inc.

Hoffer, J.A., George, J.F., and Valacich, J.S.2011. ” Modern Systems Analysis and Design.” 6th edition.

Pearson Prentice Hall.

Kirsch, L. J. 2000. “ Software Project Management: An Integrated Perspective for an Emerging

Paradigm.” In R. W. Zmud (ed.), Framingthe Domains of IT Management: Projecting the Future from

the Past, 285-304.Cincinnati, OH:Pinnaflex Educational Resources.

Pearson. (n.d.). Myomlab. Retrieved October 19, 2012, from Chapter 10: Planning and Control:

www.myomlab.com

Rouse, M. (2007, May). Search Software Quality. Retrieved October 19, 2012, from Gantt Chart:

http://searchsoftwarequality.techtarget.com/definition/Gantt-chart

THE CHAOS Report (1999), The Standish Group International Inc.