Management accounting in enterprise resource planning systems

[...]... traded organisations from a wide variety of industries and are summarised in Table 4.1 Some have been very successful in their ERP implementation whereas others are still trying to find value in these systems 16  Management Accounting in Enterprise Resource Planning Systems Table 4.1  Company and industry Company Industry AAA Telecommunications BBB Heavy engineering and chemicals CCC Audio and telecommunications... decision-making The recommended skills set for Management Accountants in this ERP environment include good communication skills, being entrepreneurial in selling their message to customers and management, and being able to advise on projects and business decisions Software skills were not seen as any more important than in a non-ERP environment 24  Management Accounting in Enterprise Resource Planning Systems. .. the majority of the accounting staff had the opportunity to gain hands-on experience of the new system during the different phases of the implementation This ultimately meant 32  Management Accounting in Enterprise Resource Planning Systems that a lot of the finance training was delivered much more informally, i.e as opposed to formal classroom training required for the other business functions.’ (e) Did... accounting, but that the management accountant is evolving into a business consultant (Caglio, 2003; Rom and Rohde, 2004) Using a field study of 10 companies in Finland, Granlund and Malmi (2002) examined the effect of integrated enterprise wide information systems on management accounting and management accountants’ work They concluded that ‘… ERPS projects have led to relatively small changes in management. .. (BoB) systems in Finland was examined by Hyvonen (2003) Financial departments were more interested in the traditional BoB systems whereas other departments preferred the ERP solution The preference for an ERP system also occurred when a strategic and technical solution was desired 10  Management Accounting in Enterprise Resource Planning Systems A partial explanation for the use of BoB in the financial... members 3 Sending out the questionnaires and analysing the responses 14  Management Accounting in Enterprise Resource Planning Systems 4 Creation of a structured interview script, based upon the responses obtained in the mail-out survey This script was used in a series of in- depth interviews conducted across a variety of organisations that had experienced differing degrees of success in the implementation... over and the business continued to produce products, invoice customers, etc.’ For the same reasons, it was also considered to have been a success by the Management Accountants in the business units, by the consultants and by the technical implementation partner in BBB 28  Management Accounting in Enterprise Resource Planning Systems The role of the Management Accountants Prior to and during the implementation,... of ERP systems on management accounting and management accountants was developed by Granlund and Malmi (2002) They proposed that ERP systems have both a direct and indirect effect on management accountants and management accounting systems Examples of direct effects are changes in report content, timing, scheduling, etc that are caused by the ERP system Indirect effects result from changed management. .. of Management Accountants has ceased, indicating an increase in job satisfaction The role of the Management Accountants has changed substantially They are now responsible for monitoring and managing projects and forecasting results They are heavily involved with both customers and management Their role has changed from one of data collection and month-end reporting to being heavily involved in business... change in the nature of management accounting information; however, there were changes in the role of management accountants ERP systems reduced the routine work undertaken by accountants and led to the routinisation of accounting through evolutionary change Management accountants and mangers found new ways of working with the ERP system, each performing different tasks than before, for example, operating . vendor), along with business combinations has 6  Management Accounting in Enterprise Resource Planning Systems resulted in most of the early ERP adopting firms re-implementing their ERP envi- ronments very successful in their ERP implementation whereas others are still trying to find value in these systems. Case Studies 16  Management Accounting in Enterprise Resource Planning Systems The names. low key user involvement, inadequate training and instruc- tion, inadequate business process re-engineering and ineffective consulting services. ERP user groups, such as ERP-SELECT in 2004 (http://erp.ittoolbox.com/groups/ vendor-selection/erp-select/eraselect-erp-for-university-587056) 1