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

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 groupwide 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 PETRAs 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.

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 groups
experience with similar system, and user groups 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:2

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 couldnt 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
3

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 ATLAMs 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 ATLAMs staff shod be ready and prepare
well to embrace SAP System. An inadequate systems implementation will worsen the ATLAMs
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 ATLAMs
staffs to change. (Hoffer, George, and Valarich, 2011)
4

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.
RM
1,000,000
2,000,000
1,271,550
72,840
RM 4,344,390

Software Licenses
Hardware cost
Training cost
Customization work
TOTAL

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):
Average SAP
license cost
Data conversion

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

YEAR 6

150,000

200,000

225,000

250,000

250,000

100,000

160,000

180,000

560,000

600,000

640,000
5

cost
Overhead cost
System
maintenance and
firewalls
Hardware
expansion
Training
TOTAL COST
Savings(RM) :
Accountants time
and efficiency
Technical
expertise cost
savings
Process and
procedures cost
savings
Working capital
savings
TOTAL SAVINGS
Net savings per
month
NET SAVINGSAFTER TAX
(1-0.25)

300,000

420,000

490,000

560,000

600,000

640,000

60,000

120,000

130,000

140,000

150,000

160,000

260,000

300,000

340,000

380,000

400,000

500,000

800,000

900,000

1,000,000

1,100,000

1,300,000

960,000

1,910,000

2,200,000

2,825,000

3,080,000

3,390,000

400,000

800,000

1,200,000

1,600,000

2,000,000

600,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,0000

500,000

900,000

1,200,000

1,500,000

1,800,000

900,000

1,200,000

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

3,300,000

4,600,000

5,500,000

6,400,000

7,300,000

540,000

1,390,000

2,400,000

2,675,000

3,320,000

3,910,000

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 whos 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 PETRAs 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.

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 its 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 =

Year 1
Year 2
Year 3
Year 4
Year 5
Year 6

i.

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

r
0.9091
0.8264
0.7513
0.6830
0.6209
0.5645

PV
490,914
1,148,696
1,803,120
1,827,025
2,061,388
2,207,195

490,914
1,639,610
3,442,730
5,629,755
7,331,143
9,538,338

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.
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
7

*** 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 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.
8

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 ATLAMs 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 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. 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.
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 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.
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

ATLAMs 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.

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
10

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

ATLAMs 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 ATLAMs 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 staffs environment such that they are shaped by what is around them.
However, it could lead to future problems or dangerous backlash if ATLAMs 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.
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. 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.

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,
11

Zulkifli Osman was very unsatisfied with Lims 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
others person concerns. These two basic dimensions of behavior can be used to define five specific
methods of dealing with conflicts as shown below.

12

1. Competing
is assertive and uncooperative, a power-oriented mode. When competing, an individual pursues
his or her own concerns at the other persons expense, using whatever power seems
appropriate to win his or her position.
2. 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
3. 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.
4. 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.
5. 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
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
13

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 halfof-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.

14

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.

15