The impact of ERP packages on decision making reporting and the role of the accountant in selected Maltese industries

Abstract

The advent of the IT-led era and the increased competition have forced companies to react to the new changes in order to remain competitive. Enterprise resource planning (ERP) systems offer distinct advantages in this new business environment through firm-wide integration of previously fragmented information systems into a single database. The aim of this qualitative study is to examine the extent of the effect ERPs have on decision making within companies and on the role of the accountant. Pronouncements as per reviewed literature were compared and contrasted with the information provided by informants. The participants consisted of three strata, structured in order to gain a wide perspective of the situation as possible. Face to face interviews were conducted. These were designed to gather information of direct relevance to the study and other general information about the respondents and the respective systems implemented. Data analysis revealed that ERPs tend to have a profound effect on both decision making and on the accountant. Indeed, ERPs provide the necessary tools to permit management to exercise better oversight of the enterprise through a real-time information base permitting timely, accurate and reliable information tailored to the requirements of the user. Furthermore, the accountant within the entity experiences a revolution in his I her day-to day work through enhanced tools for more efficient and effective working procedures. Lastly, ERPs enable the accountant to take on a strategic role within the company by empowering him I her with the necessary information to supply the relevant information for decision making and exercise controls to ensure that actual performance conforms to planned performance. Considering the critical changes brought about by ERP systems, local firms are encouraged to inform themselves regarding the implications of such systems vis-a-vis their companies. Furthermore, it is suggested that companies which have adopted ERPs and their accountants would ensure continuous training on the system so that the company reaps the full benefit of such systems, which could eventually aid in achieving and retaining competitive advantage.