1.

0 INTRODUCTION
Akademi Teknikal Laut Malaysia (ATLAM) was established on 15 August 1981
which subsequently privatized on 1 January 1997. Their vision was to be a leader in
maritime education and training, where their mission was to facilitate value added
learning via a conducive environment and provide excellent services to its clients.
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. The management of ATLAM was a wholly owned
organization of MICT Berhad.
ATLAM relied on a customized single-user system where the system cannot
produce financial reports. Therefore, they had been asked to upgrade its accounting
system with the PETRA group-wide SAP (Systems, Applications, and Products)
system. SAP is an Enterprise Resources Planning (ERP) and stands for Systems,
Applications and Products in data processing. It is a system that handles almost all
departments in an organization. SAP has several modules as illustrated below.
Zulkifli Osman, the Finance Manager, was responsible to manage this project.
The proposed SAP system was scheduled to be phased in by 1 April 2002 as the
start of the new financial year. However, there are some issue arises regarding the
implementation of new system (SAP system). Zulkifli Osman 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,
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. There are some issue arises regarding the
implementation of new system (SAP system).

2.0 PROBLEMS AND RECOMMENDATION

2.1 Implementation of SAP system
2.1.1 Problem
ATLAM need to upgrade its accounting system and the Finance Manager, Mr.
Zulkifli Osman decided to implement new accounting system called SAP. First of all,
the argument is about the cost of implementing the SAP system. Upgrading to the
SAP system requires a lot of money and based on the current cash flow, ATLAM has
negative cash flow. It might affect the company financial and non-financial information
and their strategic implications in the long-run.
Second argument is the annual license fee as well as the security for the
system. For the internal control and their audit purposes, they need to allocate one ID
per user. This can be related to the security for the system too. In order to access the
system, user must have ID to access it. Therefore, it is going to cost them a lot. In
this situation, its impossible for ATLAM to bear the costs since ATLAMs cash flow as
at December 2001 was at a deficit.
The third argument is about the time constraint issue. Due to the time
constraint, ATLAM need to implement SAP as soon as possible since the decision to
upgrade the accounting system has been made. In addition, to implement the SAP
for the accounting system has brought another argument which is the department will
have an issue on the equipment such as lack of PCs and space availability for the
staff to practical the new system. Hence, all these arguments need to be solved in
order to implement SAP for the accounting system.
2.1.2 Recommendation
2.2 Resistance to change
2.2.1 Problem
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 ATLAMs staff would be ready to
embrace the new system. This resistant showed by Mr. Lim, the User
Representative, who highlighted how difficult it was for the staff to adapt and get used
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to the new system. In addition, ATLAM is a government agency that had been
through a privatization on 1 January 1997, due to that; the staffs have a very strong
character and quite conservative. Some of the staff had never used computer before,
so they are reluctant to learn new things in the work place, they just want to do their
job like they did for the past few years. Their minds are conservative enough to resist
change in work process, culture and habits that some of the staff might refuse to
accept SAP implementation.
ATLAM is a PETRA subsidiary and has to link its system to PETRAs to match
with the group reporting structure. Due to this reason, ATLAMs 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.
On the other hand, 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 SAPs 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.
2.2.2 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:

i.

Education and Training

ATLAMs staff lack of good information or inaccurate information and analysis

about the SAP system. A comprehensive training should be provided to all the
employees in order to grasp and master the SAP system. A thorough training
schedule should be constructed for a better planning on the implementation as well.
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.
ii.

Coercion
Coercion is a method that even more extreme than subtle manipulation is

overt coercion. ALTAMs 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.
2.3 Termination of Mr. Lim
2.3.1 Problem
The user representative, Lim was kicked out by Zulkifli due to his lack of
cooperation in terms of the implementation of SAP in ATLAM. A small discussion with
Mr. Kamal after the second meeting has made a great impact on Mr. Zulkifli. He
started to question himself on his action whether it was right to terminate Mr. Lim or
not. As a person who is very knowledgeable in the relevant industry, his service is
needed to give a better picture on the ongoing scenario. However, his comments
were based on the benefits of company and concern on his fellow colleagues. He
was trying to defend his stands from end- user perspective and was not aiming to
underestimate SAPs benefits.
2.3.2 Recommendation
When a team oversteps the mark of healthy difference of opinion, resolving
conflict requires respect and patience. (Resolving team conflict) We recommend that
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Zulkifli Osman must replace the negative experiences with positive ones. 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 others person concerns.
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. 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.
On the other hand, Mr Zullkifli shall know 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, this will benefit to the ATLAM in
operation especially in SAP. Lim is expertise and as a good asset to ATLAM, we are
not suggesting Zulkifli to kick our Lim from the project team.
2.4 Time Constraint
2.4.1 Problem
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. This means, the project
team have less than six month times to develop the project. Besides, the project
team also needs to develop a project task schedule for the project members to
identify project tasks sequence and project task that can be run parallel to avoid
delay.

The upgrading system of accounting is not as easy as Zulkifli (Finance

Manager) and Sani (Project Manager) have thought.

2.4.2 Recommendation
A Gantt chart is visual aid in the management of a project then, will lead to the
effective communication and 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. 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 tasks that make up the project.
5.0 REFERENCES
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.