IRSE Accounting Software Package

Question: Discuss about the IRSE Accounting Software Package. Answer: Introduction IRCL is a local retailer that deals with the fast moving goods. The accounting package used by IRCL Company has been reported to carry a lot of inefficiencies in the operations of the organization. This necessitated some study to establish if it is really necessary to see possibility of implementing a better product. Analysis of IRSE Accounting Software Package. Why the current accounting system is not appropriate The ICRL in-house developed accounting software package is favorably suited for the companys operation and as such we can say is non-beneficial. The reason for this is its inability to support the companys large volume daily transactions and the data inconsistency and inaccuracy as reported in the case study. The system cannot support transactions of over 1000 orders in a day and this directly affects the companys ability to produce and hampers future growth. This further means that the company is most likely to fail in meeting customer demands which is disastrous to every business venture. Inconsistencies and inaccuracy of data in the inventory and sales databases could easily lead to the problems in overstocking or understocking. The ultimate effect would be failing to meet customer needs and possible loss of customer satisfaction. Having explored the above reasons, we can confidently affirm that this current accounting software package is not suitable for IRCL and should be replac ed for a better. Why IRCL need to invest in ERP ERP is a software that integrates all the business functions in all departments of an organization for efficient management. ERP helps a business manage the supply chain, inventory, human resource, procurement, finance, and product life cycle and other important components making up a business. Many businesses invest in ERP because of its ability to reduce cost, and enhance productivity. Some of the reasons why they are important are discussed in the following paragraphs. Since ERP integrates all integral parts of an organization, it helps decrease order-to-cash cycle. The order-to-cash determines how fast a company pays and receives payments for its goods and service. This is achieved since data flow from various departments are accessed and integrated together to complete a transaction and thus time taken to receive payments from customers is reduced. This increases a companys cash flow, (Premaratne, 2009) ERP is very scalable. Because of its integrated architecture, ERP system can be used across multiple geographies. A company with headquarters in different regions can still utilize the same ERP. For example, a company that uses ERP can have its warehouse in New York, the customer service center in Johannesburg and main office in Qatar. This is made possible by the ability of the system to present same data to all the offices regardless of the location. ERP also eliminates requirement that each location uploads, or extracts data to and from the central database. Data inconsistencies are eliminated here. ERP increases productivity. Since data are integrated from multiple departments and locations, a company can process order over short time, move product very fast, rapid invoicing of customers, and reconciling shipment without delays (Premaratne, 2009). This increases customer satisfaction and in return a wide customer base will be realized as well as a customer loyalty. ERP allows a company access accurate and timely information. This information may not have been available previously or it was just hard to get it with other systems. This information is more accurate as it comes from one source and also very relevant. Such information is very vital for making decisions concerning challenges that a business faces (Premaratne, 2009). Why Jenny need to be extra cautious with proceeding with the project One of the key reasons for project failure is poor governance. A project rarely starts without a sponsor. A sponsor is a person who has discovered a problem and is fully willing to be part of the solution and plays crucial role in ensuring the project succeeds. This can be through provision of resources with are important in ensuring a project succeeds (Montequn et al., 2016). Project is also surrounded with a lot of uncertainties. The two month time assigned for the project creates a real risk to development of the ERP. If time allocated is exceeded, Mr. Louise, the CEO, says that there would be no more funds to support the project. In this case, project will be left bending and likely not to be completed. Secondly, implementation of a system is a delicate stage that requires efficient management of risks, team and constant communication with stakeholders (Montequn et al., 2016). Ms. Jenny need to be cautious when agreeing to the project timeline to avoid blames at the end. I advise her to object the conditions since they would result into more problems. Traditional system development life cycle- a better methodology for use Traditional system development life cycle is a methodology that are mostly utilized by a team of developers working on a project. The methodology is comprised of five stages and one stage has to be completed before moving to the next. The traditional methodology fits the problem at hand as it focuses on deep understanding of user needs which ensures a flawless designed system thats satisfactory. Scenarios where users reject the new system is very minimal here since there is a constant involvement of system users throughout system development life cycle. Methodology also emphasizes on thorough planning so as to deal with high risks. There is also an excellent technical documentation that is produced as part of the deliverable. A good documentation is essential in system maintenance and makes the task actually very easy, (Ahimbisibwe, Cavana, and Daellenbach, 2015). Mr. Louse Tips Jenny about the $200,000 that the project will be allocated. In this methodology, it is easy to establish the projects total cost after requirements have been identified. It is therefore the best model which will help jenny estimate the project cost during the project early development stage. Outsourcing Methodology Outsourcing is an emerging methodology where a firm hires another independent firm to undertake its functions. According to Meehan (2016), Outsourcing refers to hiring an outside, independent firm to perform a business function that internal employees might otherwise perform. Outsourcing is an advantageous method of getting things done as it enables a company to enjoy services of highly qualified professionals that they may not be able to afford to employ. The outsourced company always boast of superior technological capabilities. Outsourcing is a cost effective way of achieving the desired goals since all projects work is shifted to a second party. However, outsourcing is not that best as it completely eliminates direct communication between the client and the company. The lack of communication during system development highly leads to dissatisfaction of the delivered system. Also, with outsourcing, a company loses control of its activities to the contracted company especially during implementation. Another danger arises whenever a contracting company terminates contract. The sensitive and confidential information is jeopardized. It therefore has to be deliberated in depth before using this methodology, (Meehan, 2016). Recommendations Based on the above presented facts concerning the scenario, I recommend that the IRCL Company adopts a new accounting system that will bring more benefits to the firm as has been enumerated above. However, enough resources should be made available prior to the project start dates. Mr. Louis has to commit himself to support fully the project management team for successful project completion. Word count = [1188] Reference Ahimbisibwe, A., Cavana, R.Y. and Daellenbach, U. (2015) A contingency fit model of critical success factors for software development projects,Journal of Enterprise Information Management, 28(1), pp. 733. doi: 10.1108/jeim-08-2013-0060. Meehan, C.L. (2016) Advantages disadvantages to Outsourcing IT,Small Business Chron, . Montequn, V.R., Fernndez, S.C., Fernndez, F.O. and Balsera, J.V. (2016) Analysis of the success factors and failure causes in projects:,International Journal of Information Technology Project Management, 7(1), pp. 1831. doi: 10.4018/ijitpm.2016010102. Samaranayake, P. (2009) "Business process integration, automation, and optimization in ERP,"Business Process Management Journal, vol. 15, no. 4, pp. 504526.