ERP Implementations and their Impact Upon Management Accountants

Alan Sangster, Stewart A. Leech, Severin Grabski

Abstract


This paper considers the impact of ERP implementations upon the role of management accountants, upon management accounting in general, and upon business processes. It does so in the context of the perceived success of the ERP implementation. A postal questionnaire was circulated to almost 700 management accountants working in large UK-based organisations. It finds that under successful ERP implementations, management accountants have time for other, less mundane activities and their role becomes more enriching. In contrast, when the implementation is unsuccessful, the role of the management accountant increases: the ERP system deficiencies require increased activity on their part without any noticeable reduction in the tasks they traditionally perform.

Keywords


ERP. Implementation, Success, Management Accountants, Management Accounting

Full Text:

PDF

References


Akkermans, H., & van Helden, K. (2002). Vicious and virtuous cycles in ERP

implementation: A case study of interrelations between success factors. European

Journal of Information Systems. 11(1), 35 – 46.

Aloini, D., Dulmin, R., & V. Mininno (2007). Risk management in ERP project

introduction: Review of the literature. Information and Management. 44 (6), 547-67.

Booth, P., Z. Matolcsy, & B. Wieder (2000). Integrated Information Systems (ERPsystems) and accounting practice – The Australian Experience. Third European

Conference on Accounting Information Systems, Munich, Germany.

Brignall, S. and J. Ballantine. (2004). Strategic enterprise management systems: New

directions for research. Management Accounting Review, 15, 22-240.

Caglio, A. (2003). Enterprise resource planning systems and accountants: Towards

hybridization?. European Accounting Review, 12(1), 123-153.

Cameron, D.P., and L.S. Meyer (1998), Rapid ERP implementation – a contradiction.

Management Accounting (USA), 80.

Carr, N.G. (2003). IT Doesn't Matter, Harvard Business Review, May: 41- 49.

Davenport, T.H. (1998 , July- August). Putting the enterprise into the enterprise system.

Harvard Business Review, 76 (4), 121-133.

Davenport, T.H. (2000). Mission critical: Realizing the promise of enterprise systems.

Boston, MA: Harvard Business School Press.

Denna, E.L., Cherrington, J. O., Andros, D. P., & Hollander, A. S. (1993). Event-drive

business solutions. Homewood, IL: Business One Irwin.

Deutsch, C.H. (1998). Software that can make a grown company cry. The New York

Times (November 8).

Edwards, J.B. (2001) ERP, balanced scorecard, and IT: How do they fit together?

Journal of Corporate Accounting and Finance, 12(5), 3-12.

Eisenhardt, KM. (1985) Control: organizational and economic approaches. Management

Science, 31(2),134–49.

Eisenhardt, KM. (1989) Agency theory: an assessment and review. Academy of

Management Review, 14(1), 57–74.

ERP-SELECT (2004). The top 12 reasons ERP projects fail. Available at

http://erp.ittoolbox.com/groups/vendor-selection/erp-select/eraselect-erp-for-university587056 on 14 April 2008.

Fahy, M.J. (2000, march). Strategic Enterprise Management: The Implications for

Management Accounting and Control. 23rd Annual Congress, European Accounting

Association, Munich, Germany.

Fearon, C. (2000, may). The Budgeting Nightmare. CMA Management. 2000, 11-12.

Gould, S (2003) Improving decision making in your organisation: The CIMA strategic

Vol.6, No. 2, 2009, p.125-142

Sangster, A., Leech, S. A., Grabski, S.

enterprise management (SEM) initiative. London. CIMA (available at:

www.cimaglobal.com/cps/rde/xbcr/SID-0AAAC564-

FF9E29/live/sem_techrpt_2003.pdf)

Grabski, S.V., & S. Leech (2007) Complementary controls and ERP implementation

success. International Journal of Accounting Information Systems, 8(1), 17-39.

Grabski, S,, Leech, S., & A. Sangster (2009). Management Accounting in Enterprise

Resource Planning Systems. Oxford, UK: Elsevier.

Granlund, M., & J. Mouritsen (2003). Introduction: Problematizing the relationship

between management accounting and information technology. European Accounting

Review, 12(1), 77-83.

Granlund, M., & T. Malmi (2002) Moderate impact of ERPS on management

accounting: A lag or permanent outcome?. Management Accounting Research, 13, 299-

Holland, C.P. and B. Light (1999, May-June). A critical success factors model for ERP

implementation. IEEE Software, 16 (3), 30 – 36.

Hollander, A. S., Denna, E. L., & Cherrington, J. O. (1996). Accounting, information

technology, and business solutions. Chicago, IL: Irwin.

Hunton, J.E., Lippincott, B., and Reck, J.L. (2003). Enterprise resource planning

systems: comparing firm performance of adopters and nonadopters. International

Journal of Accounting Information Systems, 4 (3), 165-84.

Jarrar, Y.F., Al-Mudimigh, A., and Zairi, M. (2000). ERP implementation

critical success factors-the role and impact of business process

management.Proceedings of the 2000 IEEE International Conference on

Management of Innovation and Technology, ICMIT 2000, 1:122-27.

Kirsch LJ, Sambamurthy V, Ko D-G, & Purvis R.L. (2002). Controlling information

systems development projects: the view from the client. Management Science, 48 (4),

–98.

Kirsch LJ. (1996). The management of complex tasks in organizations: controlling the

systems development process. Organizational Science, 7 (1), 1–21.

Kirsch LJ. (1997), Portfolios of control modes and IS project management. Information

Systems Research, 8 (3), 215–39.

Grabski, S., Leech, S., & Sangster, A. (2009). Management Accounting in Enterprise

Resource Planning Systems. Oxford: Elsevier.

Lodh, S.C., & M.J.R. Gaffikin (2003). Implementation of an integrated accounting and

cost management system using the SAP system: A field study. European Accounting

Review, 12 (1), 85-121.

Maccarone, P. (2000, March.). The impact of ERPs on management accounting and

control systems and the changing role of controllers. EAA 23rd Annual Congress,

Munich, Germany, 29-31.

Milgrom, P., & Roberts, J. (1990). The economics of modern manufacturing:

Technology, strategy and organization. American Economic Review, 80, 511–528.

R. Gest. Tecn. Sist. Inf. /JISTEM Journal of Information Systems and Technology Management, Brazil

ERP implementations and their impact upon management accountants 141

Milgrom, P. ,& Roberts , J. (1994). Comparing equilibria. American Economic Review

, 441–459.

Milgrom, P., & Roberts, J. (1995). Complementarities and fit: Strategy, structure, and

organizational change in manufacturing. Journal of Accounting and Economics. 19,

–208.

Ouchi, WG. (1979) A conceptual framework for the design of organizational control

mechanisms. Management Science, 25(9), 833–48.

Poston, R., & Grabski, S. (2001). Financial impacts of enterprise resource planning

implementation. International Journal of Accounting Information Systems, 2 (4), 271-

Quattrone, P., & Hopper, T. (2003). Management control systems in multinational

organisatios: the effects of implementing ERP. London. ICAEW Briefing 09.03.

Rom, A., & Rohde, C. (2004, september). Integrated information systems (IIS) and

management accounting: Evidence from the Danish Practice. First International

Conference on Enterprise Systems and Accounting, Thessaloniki, Greece, 3-4.

Scapens, R.W., & Jazayeri , M. (2003). ERP systems and management accounting

change: Opportunities or impacts? A research note. European Accounting Review,

(1), 201-233.

Scott, J. (1999). The FoxMeyer Drugs Bankruptcy: Was it a failure of ERP?.

Proceedings of AMCIS 1999 Americas Conference on Information Systems: 223-225.

Somers, T., & Nelson K.G. (2001, January) The impact of critical success factors across

stages of enterprise resource planning implementations. Proceedings of the 34th Hawaii

International Conference on Systems Science, Maui, Hawaii, 3-6.

Turnick, P.A. (1999). ERP: Promise or pipe dream?. Transportation & Distribution

(1), 23–26.

Wallace, T. F., & Kremzar, M.H. (2001). ERP: Making it Happen: The Implementers.

Guide to Success with Enterprise Resource Planning. John Wiley & Sons.




DOI: http://dx.doi.org/10.4301/S1807-17752009000200001

Copyright (c) 2009 TECSI

Licensed under