Abstract
Telecommunications in general and mobile telecommunication especially, act as key infrastructure factor for economic development of a country. Its role has become increasingly important with the growth of electronic business. Enterprise Resource Planning (ERP) represents a contemporary phenomenon in the use of information technology by many telecommunication companies worldwide and also in Albania. The purpose of this study is to assess the impact of privatization of the Albanian Telecom, namely ALBtelecom focusing on the added business value of the integrated enterprise system, adopted after the company was privatized. Hence, we analyze Systems, Applications and Products (SAP), which is one of the most frequently selected ERP software. SAP constitutes important topic for research, due to its great potential for strategic, managerial, financial, technical and human benefits, not to mention the associated risks. We measure the business performance of ALBtelecom in ERP environment comparing side-by-side the time before and after implementation using ratio analysis, for the period spanning from 2007 to 2012. We aim to show the importance of information got through financial statements and more deeply through financial ratios which enable shareholders and all stakeholders to better understand the company progress. The findings outline complexity, but in general they indicate significant improvement of ALBtelecom performance. DOI: 10.5901/ajis.2016.v5n3s1p198
Highlights
The telecommunication market structure for European countries, until the mid-1990’s, was monopolistic and all the telecommunication companies were state-owned
In order to be more competitive as much as possible, the firms try to take advantage of what new technology offers and one of that is the implementation of Enterprise Resource Planning (ERP)
ERP can be defined as customizable, standard application software which includes integrated business solutions for the core processes and the main administrative of an enterprise.1If we take into consideration the significant investment and the huge costs involved in ERP implementations, the impact of this system on the business performance is an important subject to be examined
Summary
The telecommunication market structure for European countries, until the mid-1990’s, was monopolistic and all the telecommunication companies were state-owned. After the launch of the European telecommunication policy in 1987, by end of 1990s, the Europe telecommunication market has undergone dynamic changes, driven by liberalization, competition, privatization and globalization. In order to be more competitive as much as possible, the firms try to take advantage of what new technology offers and one of that is the implementation of Enterprise Resource Planning (ERP). The ERP systems are prevailing platforms in most enterprises all over the world. They are an enduring part of the IT landscape and remain to be a large part of organizational IT infrastructure. ERP can be defined as customizable, standard application software which includes integrated business solutions for the core processes and the main administrative of an enterprise.1If we take into consideration the significant investment and the huge costs involved in ERP implementations, the impact of this system on the business performance is an important subject to be examined
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