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Addressing some of the challenges faced by small and medium-sized entities during the selection and implementation of accounting software packages

dc.contributor.advisorSteenkamp, Len P.en_ZA
dc.contributor.authorBishop, William Arthuren_ZA
dc.contributor.otherStellenbosch University. Faculty of Economic and Management Sciences. School of Accountancy.en_ZA
dc.date.accessioned2016-03-09T14:00:09Z
dc.date.available2018-03-31T03:00:06Z
dc.date.issued2016-03
dc.identifier.urihttp://hdl.handle.net/10019.1/98281
dc.descriptionThesis (MCom)--Stellenbosch University, 2016.
dc.description.abstractENGLISH SUMMARY : Alignment between an entity’s strategic business objectives and its information system (IS) has been a popular research area over the last couple of years. There is a considerable amount of literature on how to solve this alignment issue in larger entities, but limited research is available on the challenges that small and medium-sized entities (SMEs) face when having to align their strategic business objectives with their ISs. Various small generic accounting software packages are available for purchase by SMEs. These accounting packages all have functionalities that enable SMEs to keep proper accounting records; however, due to their generic nature, these accounting packages do not always have sufficient functionalities to drive the SMEs’ strategic business objectives, resulting in IS misalignment. Newly established SMEs face the challenge of both selecting the correct accounting software package at the start of their establishment and proper implementation of the selected package. The same challenge is faced by growing SMEs that are planning to replace, improve or expand their current accounting software. Not selecting the correct accounting software package and not managing the package installation and configuration processes properly will result in the accounting software not addressing the strategic business needs of the SME. These are two of the main reasons why small generic accounting software packages often fail to drive the entire business system of SMEs. The purpose of this research assignment was to review and discuss the two main challenges faced by SMEs when selecting and implementing generic accounting packages. The purpose was further to develop a mapping between strategic business objectives commonly found within SMEs and software package functionalities that SMEs can refer to during the selection and implementation of new accounting software packages. It also examined the potential of (PRINCE2) Projects in Controlled Environments as a project-management framework for application by SMEs during the implementation of new accounting software. A non-empirical approach was followed throughout this assignment, whereby a literature review was performed on strategic alignment issues faced by SMEs, the strategic business objectives of SMEs, the functionalities required for strategic alignment within SMEs and the tailoring potential of PRINCE2. It was found that in order for an SME to select the correct accounting software package, it is important that it invests time and effort in considering the software functionalities provided by the software package and maps it against its strategic business drivers to prevent failure of the package. It was further concluded that the level of innovation the SME strives towards has a direct impact on the software package functionality requirement. PRINCE2 was found to be a suitable framework for use by SMEs in the implementation of accounting software packages only if tailored properly to incorporate the specific needs of the SME and adjusted to specifically address strategic alignment issues.en_ZA
dc.description.abstractAFRIKAANSE OPSOMMING : Die belyning van ‘n entiteit se strategiese besigheidsdoelwitte en inligtingstelsel is reeds vir etlike jare ‘n gewilde navorsingsonderwerp. Baie is al geskryf oor hoe om hierdie belyningskwessie by groter entiteite op te los, maar beperkte navorsing is beskikbaar oor die uitdagings wat klein en medium-grootte entiteite (KME’s) in die gesig staar wanneer hul strategiese doelwitte met hul inligtingstelsels in lyn gestel moet word. Verskeie klein generiese rekeningkundige sagtewarepakkette is vir aankope deur KME’s beskikbaar. Hierdie rekeningkundige pakkette het almal funksionaliteite wat KME’s in staat stel om behoorlike rekeningkundige rekords by te hou, maar as gevolg van hul generiese aard, het hierdie pakkette nie altyd genoegsame funksionaliteite om die strategiese besigheidsdoelwitte van die KME te dryf nie, en gevolglik lei dit tot wanbelyning. Nuutgestigte KME’s staar twee uitdagings in die gesig, naamlik dat die korrekte rekeningkundige sagtewarepakket tydens die beginstadium van die KME gekies moet word, asook om behoorlike implementering van die sagtewarepakket te bewerkstellig. Hierdie uitdagings word ook deur groeiende KME’s wat beplan om hul huidige rekeningkundige sagtewarepakkette te vervang, te verbeter of uit te brei in die gesig gestaar. Die keuse van die verkeerde rekeningkundige sagtewarepakket en wanbestuur van die installasie- en konfigurasieprosesse kan daartoe bydra dat die rekeningkundige sagteware nie in die strategiese besigheidsbehoeftes van die KME voorsien nie. Hierdie is twee van die hoofredes waarom klein generiese rekeningkundige sagtewarepakkette dikwels nie daarin slaag om die besigheidstelsels van KME’s behoorlik te dryf nie. Die doel van hierdie navorsing was om die twee hoofuitdagings wat KME’s in die gesig staar wanneer generiese rekeningkundige pakkette geselekteer en implementer word, te ondersoek en te bespreek. Die doel was verder om ‘n kartering tussen strategiese besigheidsdoelwitte, wat algemeen op KME’s van toepassing is, en sagtewarepakket funksionaliteite te ontwikkel waarna KME’s kan verwys gedurende die selektering en implementering van nuwe rekeningkundige sagtewarepakkette. Die potensiaal van (PRINCE2) Projects in Controlled Environments as ‘n projekbestuursraamwerk vir toepassing deur KME’s gedurende die implementering van nuwe rekeningkundige sagteware is ook geëvalueer. ‘n Nie-empiriese benadering is deurgaans in hierdie navorsingsopdrag gevolg waartydens ‘n literatuurstudie gedoen is oor die strategiese belyningskwessies van KME’s, die strategiese doelstellings van KME’s, die funksionaliteite benodig vir strategiese belyning van KME’s en die aanpassingspotensiaal van PRINCE2. Daar is gevind dat ten einde die sukses van sagtewarepakkette te verseker, dit vir KME’s belangrik is om genoeg tyd en moeite tydens die oorweging van sagtewarefunksionaliteite van sagtewarepakkette aan te wend en ook om dit met strategiese besigheidsdoelwitte te vergelyk ten einde die korrekte rekeningkundige sagtewarepakket te kies. Daar is verder tot die slotsom gekom dat die vlak van vernuwing waarna ‘n KME streef ‘n direkte uitwerking op die verlangde funksionaliteite van die sagtewarepakket het. PRINCE2 is as ‘n geskikte raamwerk vir gebruik deur KME’s tydens die implementering van rekeningkundige sagtewarepakkette geklassifiseer, mits die raamwerk behoorlik aangepas word vir KME-spesifieke behoeftes en om strategiese belyningskwessies aan te pak.af_ZA
dc.format.extentxi, 79 pages
dc.language.isoen_ZAen_ZA
dc.publisherStellenbosch : Stellenbosch University
dc.subjectSmall businessen_ZA
dc.subjectAccounting -- Computer programsen_ZA
dc.subjectBusiness imperativesen_ZA
dc.subjectSoftware functionalitiesen_ZA
dc.subjectSoftware failuresen_ZA
dc.subjectStrategic planningen_ZA
dc.subjectStrategic alignmenten_ZA
dc.subjectUCTD
dc.titleAddressing some of the challenges faced by small and medium-sized entities during the selection and implementation of accounting software packagesen_ZA
dc.typeThesisen_ZA
dc.rights.holderStellenbosch University
dc.embargo.terms2018-03-31


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