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“ORACLE, SAP ERP usage in Industry,
its scope in Pakistan and its Career
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Options”

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Submitted TO: Madam KHAWAR
Submitted BY: ARIF Masood

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BS (Accounting & Finance) (2006-2010)

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Bahau-din-Zikariya University Multan, Pakistan

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 TABLE OF CONTENTS

Chapter 1 _________ AIS & ERP usage in Industry

Chapter 2 _________ AIS software comparison Table

Chapter 3 _________ How AIS, ERP is perceived in each Industry

Chapter 4 _________ AIS & ERP development and scope in Pakistan

Chapter 5 _________ SAP & ORACLE in Pakistan

Chapter 6 _________ ERP Career options and Certification guide

Accounting Information System
and ERP Usage in Industry
Accounting information systems are useful for companies and businesses wanting to make the
accounting process easier by utilizing a computer program or other system that will perform
payroll and other functions. These systems, commonly including accounting software, make it
easier to compile financial data for use in taxes, payroll, and other bookkeeping requirements.
Recording is the first step in these systems that are used by companies including pertinent data
such as expenses and profits that are very important to keep on file. After the recording phase,
the information will be processed for use. When processed, it is filed in the areas where it is most
important. These systems have various groupings or categories to maintain files until they need
to be used in the future for whatever reasons. The final step that is part of most software
programs is the communication phase. This is the process of actually utilizing the records that
have been recorded and processed.

The use of these systems is a very big part of businesses and corporations. Using resources
available through accounting information systems allows major corporations and small
businesses to record transactions and other financial information for use in the future. These
tools can make the process much smoother, save money for the business, and save a great deal of
time. With accounting software, computerized documents will make it easy to file and send
documents to the IRS or other interested individuals. Money will be saved by not having to
utilize the services of an accountant or CPA. This will also save time because expenses, payroll,
and other financial matters can be completed by the owner at the business, with no need to take
paperwork or other materials to an accountant for tax and payroll purposes. Taking advantage of
this type of system can provide many great benefits to a large or small business. Accounting is a
very important part of running and maintaining a business and the success of a company will
often heavily rely on the practices and procedures that are used in the bookkeeping efforts of the
company.

ERP systems are large-scale information systems that impact an organization's AIS. These
systems permeate all aspects of the organization and require technologies such as client/server
and relational databases. Other system types that currently impact AISs are supply chain
management (SCM) and customer relationship management (CRM). Traditional AISs recorded
financial information and produced financial statements on a periodic basis according to GAAP
pronouncements. Modern ERP systems provide a broader view of organizational information,
enabling the use of advanced accounting techniques, such as activity-based costing (ABC) and
improved managerial reporting using a variety of analytical techniques.
Comparison of Accounting software:

Mac
Market
Package License Windows OS Linux Type Structure
focus
X
Software Low to
24SevenOffice as a Yes Yes Yes Mid- ? Web based
Service Market
Business
QuickBooks Enterprise Mid
Proprietary Yes Yes Yes management, Stand alone
Solutions Market
Payroll
Quicken Proprietary Yes Yes No Personal ? Stand alone
Accounting
Sage Proprietary Yes No No CRM, payroll Stand alone
Firms
Low-
Sage Line 50 Proprietary Yes No No market (for ? Stand alone
SME)
Mid- ERP, Process
Sage PFW ERP Proprietary Yes No No Stand alone
market Manufacturing
Small &
Midsize ERP, e-
SAP Business One Proprietary Yes No No Stand alone
Enterprises Commerce
(SME)
ERP, CRM,
SCM, SRM,
PLM, GTS, e-
Stand alone
Midsize to commerce,
SAP ERP Proprietary Yes Yes Yes and Web
High-end Business
based
Intelligence,
Mobile
Business
Business
Accounting,
Simply Accounting Proprietary Yes No Yes Low-end Retail, Stand alone
Inventory
Control
Mid-
Tally Proprietary Yes No No payroll Stand alone
market
How is AIS received in each industry?
ERP calls for different operations and applications in different industries. Each industry has their
own drawbacks and plus points in dealing with the enterprise applications. A comparative study
will help in analyzing them precisely.

Some of the well known beneficiaries include the following sectors:

MANUFACTURING
ERP has helped to increase the efficiency and quality of the manufacturing process. The
manufacturing process experienced slumps quiet often because of improper communication,
miscommunication, wrong communication and even lack of communication. ERP provided
solutions to those troubles by coordinating the actions of supply chains, ware house and logistics.

It also helped greatly in functions like tracking down the status of the product. Formerly
customers were made to run from pillar to post to enquire the status of product or for enquiring a
technical problem. The customer service representative would not be in a position to directly
reply to these queries. On the contrary he would ask the person from the concerned department.
The person would check the details and get back to him be it the status of a product or technical
issue. This seemed to be time-consuming and meaningless. The longer the chains of
communication greater are the chances of mistakes. CSC erp finance is software meant for
accounting purposes.

SOFTWARE
The manufacturing sector has been rated as the largest beneficiary. This sector can be rated as
the one who uses ERP easily because it is a product from their species. This does not undermine
ERP'S use in Software sector because it becomes easy to manage projects with acute deadlines.
ERP industry paper will also reveal that it is easy to train and make people work in this sector
than anywhere else.

INSURANCE
Enterprise Resource planning has played a vital role in this business by covering three vital
areas. Firstly it has provided a common platform for insurers and his agents. This has helped in
easing the transactions and keeping an eye on the performance of the agent. This has addressed
the difficulties of both the agents and insurers and thus facilitated coordination in the better
interests of the business.
Secondly it has helped in curbing procedural delays and inefficiencies for which the sector is
famous for. This statement can turn out to be truer if the sector is owned and controlled by the
government either fully or partially. Of course bureaucracy and redtapism are inborn features in
a state's set up but their presence in an insurance industry can do more harm because it calls for
dispensing immediate information during lawsuits and pending claims. IBM erp Insurance is a
famous player in this sector.

HEALTHCARE
The sharing of databases among hospitals seemed to be a great advantage for doctors and
patients. This even makes one to exaggerate that a person need not maintain a collection of his
medical problems provided that his/her choice of hospital/hospitals has a database of patient
records(or commonly shares them by any other means).Even though it is not practical to follow
those practices ERP has been a lifesaving measure to patients who are admitted in a hospital in
an emergency condition irrespective of the fact that the doctor in charge is aware of his medical
history as ERP provides everything. ERP industry analysis here will reveal that confidentiality is
affected but the life of a person is to be given the utmost priority.

HOSPITALITY
ERP has helped a lot in bringing down the operational costs and coordinating the acts of
individual departments. Hotels are well known for the segregation of functions. One can find
many small departments like house keeping beverage supply room service etc. Even though
these segregations sound small they have a large impact on the organizational structure. ERP
offers a common medium to coordinate their actions. The entire action can be controlled in the
reception desk. ERP industry paper points the exact benefit as per ERP industry analysis. Besides
this textile erp insurance is equally famous.
Accounting Information System
Development & Scope in Pakistan

In the early nineties the emergence and revolution in the field of information technology caused
development in many field and subjects.

The field of accountancy also too had too influenced by the "Information Technology
Revolution". At that time the term computer science used for I.T. The first invention, of I.T that
brings revolutionary change in the accounts and finance, was MS Excel.

The thousands of accountants warmly welcomed the I.T but also they were too hesitated. At that
time many organizations started using MS Excel for the purpose of cash book and other
subsidiary accounting records. Latter on the excel had been started to use for the purpose of
maintaining ledgers or even for keeping full accounting record including Profit & Loss A/c. The
feature of creating links among different sheet was the most significant feature of Excel. By
using this feature the accountants were able to create links between ledgers, trial balance, profit
& loss A/c and balance sheet. By passing a single entry in ledger the effect of the transaction
could be transferred to the final destination i.e final accounts.

At the end of nineties the software developing started at mass level.

The Government of Pakistan also fully support the I.T. Being first step the government
established the National Database and Registration Authority (NADRA). The ministry of
information technology also takes very bold decisions for the development of I.T.

Many financial benefit were also give to the I.T firms it included long tax holiday to software
houses, Sales Tax exemptions on hardware and computer equipments. The high rate of
depreciation on computer software's and hardware is also settled to provide further benefit to I.T
sector (Know the depreciation rate is 30% p.a).

Due to all above mentioned steps of government and favorable socio-economic environment the
I.T sector witnessed huge development.

At the end of 20the century the development of software's for various fields started. Since then
thousand of software's has been developed by the I.T industry of Pakistan. Many multinational
I.T companies have also established their offices and made investment of millions of dollars in
the field of I.T.
Know a days many accounting software's are available for accountants. The most well known
accounting software's are Peachtree, Quick Books, Sage, Sun Accounts, Oracle Financials,
SAP etc.

Many local made accounting software's are also available i.e SIDAT HAIDER FINANCIALS etc.

Some Pakistani firms has also designed the software’s that can be configured with other
accounting software's. These software's are normally related to payroll, inventory and
production.

The need for a complete system or software for financial executives is visible. The CFo, Director
Accounts, Director Finance or Chief Accountant of all the business are assumed to capable of
taking many immediate decisions relating both accounts & finance and production, inventory,
costing etc. These decisions required the information of other departments of a business also.

For instance a CFO of a company wants to prepare budget for purchase for whole financial year.
Then he has to need the information of total quantities of inventories purchased during financial
year beginning and ending inventory balances.

The need of integrated accounting software gave birth to the idea of Accounting Information
System.

Accounting Information Systems provide efficient delivery of information needed to perform

necessary accounting work and to assist in delivery of accurate and informative data to users,
especially those who are not familiar with the accounting and financial reporting areas itself.

The accountant of tomorrow will be significantly different from the accountant of the past.
Educational institutions must recognize the areas of change and prepare their accounting
students for a changing professional environment. Major catalysts for this dramatic change are
found in recent advancements in computer technology and the advent of e-business.

The emergence of the e-business model and the integrative discipline of ERP (Enterprise
Resource Planner) systems have accelerated the change. The accountant of tomorrow will need
the traditional technical and communication skills as well as significantly enhanced technology
skills.

The accountant`s role has been expanding within organizations and they are becoming part of the
management and decision-making team, rather than just providers of financial information.
Corporate accountants must shift priorities from analyzing past events to acting as strategic
partners, advisers and information providers. Already, accounting and finance professionals are
mining data, turning information into knowledge and communicating what they learn to all levels
of the organization.
In a recent survey, CFOs indicated that, in addition to traditional financial expertise, the one area
that is most critical to the future success of accounting professionals is technology expertise. In
public accounting, future growth is primarily related to technology and e-business.

Outstanding opportunities exist in consulting and in the corporate environment for individuals
with both an accounting and information systems background. Even in the audit area, new
techniques and approaches are used to audit e-business clients and ERP systems. Internal control
assessment now requires new innovative methods.

Staff accountants routinely link to centralized client databases via laptops. The Electronic
Business Technology (EBT) model is significantly changing both the way business is done and
the accounting and auditing of those businesses.
 SAP and ORACLE in PAKISTAN Industry

SAP seems to making a push further into Pakistan. It is looking for people to hire, and for
business partners (resellers and system integrators). Pakistan, India, China and the ME region are
a hot market for ERPs, and possibly the last “real, large” market for enterprise ERP systems.

SAP currently is installed at over 20 of the largest companies in Pakistan, with the customer
list including the likes of PSO, Indus Motors, KESC, etc

Oracle isn’t sitting on the sidelines either; they have closed quite a few projects through
several system integrators in the country in the last 8 months. With their acquisition of iFLEX, a
core banking suite they are also now wading into the banking sector in Pakistan, much to the
annoyance of IBM + Misys.

All this while Microsoft’s Dynamics (Their ERP suite: GP, Solomon, etc) initiatives look as cold
as an uncooked kettle of fish, as usual. I guess the regular licensing and ISV sales are more than
making up for it, as usual

Siemens has been doing numerous SAP implementations in Pakistan over the years. The
very first implementation at Packages Ltd. was started back in 2003. In the intervening 5 years,
even though other services firms have been deploying SAP solutions also, Siemens has gone to
the very top of the list in terms of number of successfully deployed SAP installations in Pakistan.
It was no surprise, then, to learn about their newest win at Aisha Steel. Siemens will be
implementing financial, supply chain and project management modules for Aisha. There was no
word on when the deployment is expected to be complete, but these projects normally end up
taking a while so we would imagine the Siemens team will be staying busy for the next year or
so. No deal-size details were disclosed, but SAP implementations 5 years ago were running in
the $3M range, inclusive of professional services and training. We would expect that this
implementation would be in the $5M range.

It’s not just SAP that’s rocking the house as far as the local market goes. Oracle is making
waves too. Two significant deals were closed by Oracle recently, Wi-tribe, the third largest
WiMAX service provider in Pakistan, and International Industries, a conglomerate. Previously,
Oracle’s Peoplesoft solution has been adopted by several educational institutions in the country,
including Dow University in Karachi. It’s pretty obvious that local ERP installs are an
increasingly booming business in Pakistan.
Wi-tribe Pakistan Ltd, a new entrant in the Pakistani communications industry with a major
focus on providing WiMax solutions, has chosen Oracle Communications Billing and Revenue
Management and key components of the Oracle Communications Service Fulfilment Suite,
including Oracle Communications Network Mediation, Oracle Communications Service
Activation and Oracle Communications Order and Service Management, to better manage its
business from the onset of launching new WiMax services.

“Oracle has been a significant provider of business support systems (BSS) and operational
support systems (OSS) to the communications industry, and it will help wi-tribe meet its
aggressive business goals with Oracle Communications applications. We are committed to
helping wi-tribe Pakistan Ltd become an innovative service provider leveraging the Oracle
Communications applications suite to deliver a robust, profitable and world-class services
offering,” said Raghav Sahgal, vice president, Asia Pacific & Japan, Oracle Communications.

Conclusion
The ERP market in Pakistan is definitely promising. But, Pakistan has got a long way to go when
it comes to Improving ERP in terms of technology, scope and applicability in terms of
opportunities and venues, penetration in terms of sectors like education, employment and the
state run offices. Some bigger companies still hesitate to invest in ERP due to the exorbitant
costs. It is indeed encouraging to find that a vast majority of them have realized its benefits and
have determined to go for it. However some of them are keeping quiet due to the risks involved
besides the unforeseen expenses and losses.
 AIS or ERP Professional\Consultant as a career

To pursue a career in as AIS or ERP software professional, one must have basic know how of
accounting and financials that the business deals with. Individuals with degrees like MBA,
M.com, Masters in accounting and Finance or those have professional degrees like acca, ca e.t.c
are more likely to have a successful career in this field. I.T and computer professionals with
basic knowledge of accountancy and finance can also found success with little struggle.

Since there are variety of software’s available in market, therefore target job market also varies.
One can have expertise in dealing with simple accounting software like QuickBooks and
Peachtree accounting and can also be a SAP or ORACLE certified professional.

Accounting Software like Peachtree accounting and QuickBooks are used on low range business
like shopping stores, medicine halls etc where as ERP packages like SAP, Oracle are used in
large level companies which may be dealing in manufacturing, trade etc.

There are plenty of institutes and training centers out there in market locally as well as online
which teach software like Peachtree accounting and QuickBooks. In Multan, these software’s are
taught in institutions like SKANS, ICAP, Rise. Apart from these software’s locally build
software for simple accounting dealings are also available, which are easy to understand and are
build according to needs of Pakistani business environment.

Training and certification centers of Oracle and SAP ERP are scare. In Pakistan,
Only Karachi, Lahore and Islamabad are only places where one can learn about SAP ERP. SAP
learning courses are offered by two organizations in Pakistan, One is Siemens Pakistan, which is
pioneer of introducing ERP in Pakistan. They have centers in Karachi and Lahore. Apart from
Siemens ABACUS CERTIFIED TRAINING CENTER is also operating in Lahore as authorized
Partner of SAP to teach different SAP courses.

SAP, the worlds leading software providers, has planned to establish 50 E-academies across
Pakistan with special focus on small towns to train youth particularly in the Enterprise Resource
Planning (ERP) software. "Two such academies are already functioning in Lahore and Karachi
where SAP Pakistan offices are imparting training to a selective bunch of young persons on
experimental basis.
Following very encouraging response, we have planned to extend this facility across the country.
For this purpose SAP would be inviting expression of interests from different colleges and
academies interested to impart this training which is a mixture of distance and on-site learning,"
said Sajjad Syed, Managing Director SAP Pakistan while talking to Business Recorder here on
Thursday.

He said that young people trained by these E-academies would be placed on jobs in their
Singapore and Dubai offices. He said that there was a demand of 11,000 SAP experts every year
only in the Asia-Pacific region. He said India was already facing SAP experts shortage, Chinese
could not fill this gap due to not being well versed in English and as such there was a great scope
for Pakistanis to capture this field.

He said that experts could be sent for SAP applications abroad on remuneration as higher as US
1000-1500 dollars per day. Sajjad Syed stated that there would be an entry test to these
applications and students having degrees of computer sciences, B Com., MBA or other
disciplines could be trained in SAP applications.

He also said that IBA Karachi had already signed a Memorandum of Understanding (MoU) with
their organisation to include SAP courses in its curriculum for MBA students. He said at present
faculty of these E-academies were being trained in their software. He said the students having
SAP training, would have a chance of getting job with 20 percent more salary.

Talking about their organisation, he averred that SAP was a forty year old German company
having more than 83,000 customers from over 120 countries, having SAP applications from
distinct solutions addressing the needs of small and midsize companies to suite offerings for
global organisations. In Pakistan, SAP has offices in Karachi, Lahore and Islamabad. It has
approximately 70 customers, including public and private sectors departments.

He said that SAP was committed for the development of Pakistani software industry and IT
sectors, with particular focus on consultancy, education, public sector and other industry
verticals. He said that they see a good market for their applications in Pakistan as they had signed
some 21 new customers last year. Regarding impact of financial crunch on SAP and other IT
industry, he said that although global financial crunch had left negative impact on IT sector but it
was not that serious in SAP.

There are 3 SAP certificates accepted around the globe;

• SAP Certified Master

• SAP Certified Professional

• SAP Certified Assistant

Courses offered here in Pakistan are

• SAP Financials

• SAP Human Resources

• Solution Manager

• SAP Financial Accounting

• SAP Sale and Distribution

Duration for these courses ranges from 20-35 days where as Leering Fee is 300,000 – 500,000.

Techno Ed is only Organization which teaches Oracle Business suit here in Pakistan, They offer
courses like,

• Oracle 9i Database

• Oracle Database 10g DBA

• 11i E-biz Solutions

• Oracle Financials General Ledger

They have their centers in Lahore, Karachi and Islamabad.

Career for Professionals in AIS and ERP is bright as it ever evolving and progressing Job. With
every passing day, more and more companies are realizing worth of having ERP system. Good
Pay Packages are offered to ERP experienced professionals with in Pakistan (50k – 200k PKR)
and abroad (400k-700k PKR).

*For Further SAP certification info visit the Siemens Pakistan website.