Subject: Accounting Information System 2

Success Corporation has a budget of RM117 million, 1.2 million employees, and over RM1 billion in assets. The management team decided to change its aging and inefficient information systems. The current system cannot produce accurate accounting information especially for audit purpose. Only few of their 4,000 systems communicate effectively with other systems. Most systems require data that are transferred between systems to be manually reentered.

The Success Corporation has been trying to upgrade its accounting information systems (AIS) for over 20 years, at a cost of over RM35 million. After three notable failures, it is trying a fourth time. The Business Management Modernization Project's (BMMP) goal is to integrate Success Corporation systems and business processes. A notice to get prepare on the installation of the new integration system by end of this year has been circulated to all staffs through an email. Unfortunately, many people would rather not see the Success Corporation realize this project. Past reforms failed because system developers could not break through the barriers Success Corporation agencies created to protect their processes, procedures, and chains of command.

Few of the executives against the idea of integration because what is optimal for one user is suboptimal for users in other departments. Even most of the employees show negative reactions on the integration news. To overcome the behavioural problems, the Director of BMMP is trying to convince the staff to rid themselves of their "program protection" mindset for the good of the company.

Required:

1. Comment on the phrase rid themselves of their "program protection" mindset.

(4 marks)

1. Discuss FIVE (5) reasons why employees resist to accept the new integration system.

(10 marks)

1. Recommend THREE (3) initiatives by the management to avoid resistance from the employees.

(6 marks)