Management Accounting and Information Systems: Erp Versus Bob

Abstract

The purpose of this study is to compare the use of enterprise resource planning (ERP) and best of breed (BoB) standalone systems in practice. The data for the study were collected through a postal questionnaire in 300 large and middle-sized industrial units in Finland. The questionnaire addressed questions concerning IS implementation (why, how and by whom the IS project was introduced), management accounting function, and the use of advanced management accounting techniques. The results obtained indicate that financial departments have been more interested in traditional BoB systems, while other departments have concentrated more on ERP solutions. Further, as the articulated motives behind the IS project were strategic, and moreover technical in nature, the solution in most cases was ERP, while in the cases where motives were either strategic or technical, the choice was BoB. Otherwise, there were no statistically significant differences between the groups of BoB or ERP adopters, and the problems perceived in management accounting or the adoption of advanced management accounting techniques (e.g. ABC, ABM and BSC).

The role of a predictive analytics project initiator in the integration of financial and operational forecasts

“…Nevertheless, research that has focused on the initiator's role in the initiation of accounting information systems is still scarce. Hyvönen (2003) shows that there is a link between the accounting profession and IT system design. His results further indicate that the initiator of a new IT system has an impact on what kind of system will ultimately be implemented.…”

“…Accordingly, our knowledge about this important relationship is still in its infancy. The notable exception is Hyvönen (2003), who suggests that accounting departments have been advocating more stand-alone systems than fully integrated systems. However, in contrast to these findings, HenttuAho (2016) found that accountants can have a positive influence on the integration of numbers within financial forecasting.…”

“…Hyvönen, 2003;Dechow and Mouritsen, 2005;). The key indicator of the degree of integration is the similarity of numbers.…”

“…Prior studies suggest that the initiator of a project has a significant impact on its outcome (see for information system projects: Hyvönen, 2003; for accounting technology projects: Anderson, 1995, andMcGowan andKlammer, 1997). Initiators can be defined as powerful groups or individuals who initially suggest and support the initiation of a new system/technology .…”

International Journal of Business and Management, Vol. 3, No. 8, August 2008

“…A BoB strategy involves interfacing the 'best' available softwares for each function and therefore they do not automatically share a common database (Miranda, 1999;Moriarty, 1999;Hyvonen, 2003). The functionality required from the system, the ability of your own IT department, the resulting relationship with the vendors and of course the cost, are the major issues you have to examine when deciding between an ERP system and a BoB system.…”