On allows the information to be easily accessed,

On the other hand, there are some difficulty needs to be overcome in order to use ERP systems. The biggest problem is the process of data migration where the data need to be transferred from the old system to the new ERP system where any loss of data or duplication of information can tarnish the reliability of the new ERP system and at the end can lead to poor control and decision making. Fortunately, the company has been successfully resolved this problem which the vendor (IFCA) had transferred the legacy data into a new system from the Excel spreadsheet and manual records. They also performed data verification in order to ensure that the data were accurately transferred, complete, and able to support new systems. In addition, to increase data quality, eliminate redundancy, and remove obsolete information, the data cleaning was also carried out. 

 

Information extraction from the ERP system is also one of the problems that the companies need to encounter. This problem needs to be solved because the information needed by the user must be accurate and complete to enjoy the full influence of a management control system. The respondent claimed that:

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

 

“They often encounter problems in getting the information from the system beyond what is provided by the standard reports. For instance, different manager requests for different reports and the format of the reports are often changed. As the systems can only produce a standard report, to customize the report from the system to cater for the need of each manager means to incur more cost”.  

 

Thus, there is the additional tasks to be entertained and completed by the responsible person which in a high volume context may be unproductive and does not weigh with the benefits as compared to the time, energy, and cost committed.

 

Besides, The ERP system allows the information to be easily accessed, it can also allow the risk of fraud and unauthorized transactions. In the LCSB and KLD company, the study found that the companies do not have a solid security or internal control system where an employee can have control over several parts of the process. For instances, an accounts assistant is given the responsibility to amend the suppliers’ master file details and at the same time, he is the person in charge of making payments, meaning he could create fraudulent payments to himself through the creation of fake suppliers. In order to reduce the risk of fraud and unauthorized transactions, the management has to ensure that no single individual has control over two or more related parts of a process.

 

 

 

 

 

x

Hi!
I'm Simon!

Would you like to get a custom essay? How about receiving a customized one?

Check it out