“As an organization grows, demand for information grows with it. Bottlenecks become more apparent, and the strains on financial management increase. According to a study of cloud accounting by Vital Analysis, on average eight to ten percent of the financial accounting software market turns over annually. Approximately four percent of the market requires a new solution because the company has experienced extraordinary growth (or in some cases, contraction). The change in business size often requires new solutions to reflect the increased business and functional requirements of the organization.” (France M.)
Riordan Manufacturing strives for continued profits and market share for the year 2006. A 50 million dollar sales revenue figure is an approachable goal. However, the company needs to streamline processes, as short and long-term goals will be increasingly difficult to achieve using current standards. The problem analysis will focus on streamlining finance and accounting departments, employing sales and marketing upgrades, and overall, information technology implementation in all departments.
The financial and accounting need alone drives Rirodan’s requirement for an implemented enterprise IT system. Riordan is not the only business that suffers from accounting and financial errors due to multiple software platforms at each location. Using different types of software at each location makes it difficult to integrate the information. Because the information formatted differently and stored in different formats, errors occur during the integration process. For example, the company might need to consolidate all of their past due accounts that need payment. The information needs to be consolidated and sent to corporate level attorneys to begin legal action for collection. However, some of the accounts from the mid-west region are using a different platform and their information failed to integrate correctly. These accounts have slipped through the cracks and serious loss of profit just occurred. This is just hypothetical scenario and only represents single instances in which their outdated IT system lost Riordan money.
Because accounting and financing affect the company’s overall profits and investor relations Riordan’s decision makers will align and show