EAA'2000
Abstracts

The Impact of ERPs on Management Accounting and Control Systems and the Changing Role of Controllers

Maccarrone, P.

ABSTRACT

 

The impact of ERP systems on management and control activities seems to be (at least potentially) quite impressive, especially with regard to strategic management accounting.

Nevertheless, a growing concern exists both among scholars and practitioners about the theoretical soundness of some ERP management control applications (or "modules"), and about some important organisational issues.

In the light of these considerations, the research work has been articulated as follows:
- firstly, a thorough critical analysis has been conducted on the structure and functionalities of the management accounting and control modules of the most diffused ERP package: SAP, with respect to the most recent theories on management control systems. This analytical phase ends with the elaboration of an integrated model of benefits and risks related to the implementation of an ERP in a firms;

- secondly, an empirical research has been conducted through a number of case studies, aimed at verifying:

- the extent to what SAP management control modules fit firms’ needs, the extent to what firms’ management recognise the system limitations and risks (with respect to control functionalities), and the way in which they deal with this problems;

- the robustness of the qualitative model of benefits and risks, and the relevance of the identified contingent variables;

- the impact of the introduction of an ERP on the role and skills of controllers.

The early results of the field study seem to confirm the tremendous potential of this kind of these technical solutions, but highlight also some important critical areas. In particular, the way in which some of the most advanced management control techniques are implemented by SAP is doubtful, and also traditional management accounting practices seem not to fit all application contexts: more in general, benefits enabled by ERPs seem to vary to a great extent from firm to firm, depending on some variables. Lastly, there is evidence of the changing role of controllers, and of the related impact on required skills and competencies.

Contact Author: Paolo Maccarrone
Politecnico di Milano, Department of Economics and Production
Piazza Leonardo da Vinci
20133 Milano, Italy
Tel: +390223992766
Fax: +390223992720
e-mail: paolo.maccarrone@polimi.it

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This abstract belongs to a paper presented at the EAA'2000 Annual Congress held in Munich in March 2000.

If you are interested in obtaining a copy of the above paper please contact the author directly at the address given above. The EAA does not own copyrights to any of the papers presented at its Annual Congress' and will not be able to supply you with a copy of this paper.

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