30
31
Impac s o he Implemen a ion o ERP
Sys ems on Cash Managemen : The Redesign
o T easu y P ocesses
Be nabé Escoba . Uni e si y o Se ille. Spain.
[email p o ec ed]
John Cullen. She ield Hallam Uni e si y. UK.
[email p o ec ed]
José Ma ía González. Uni e si y o Se ille. Spain.
[email p o ec ed]
Abs ac : The aim o his pape is o analyze aspec s o o ganiza ional change induced by using
p ocess eenginee ing o implemen new in o ma ion echnology (speci ically an ERP sys em) on
easu y depa men and i s p ocesses. Based on an in ensi e case s udy, he pape explo es he
changes in he easu y depa men o a la ge Spanish Elec ici y Company ha implemen ed he
SAP R/3 sys em. The esul s sugges ha change had impo an epe cussions on he echnological,
o ganiza ional and human dimensions o he easu y depa men . E idence is also p o ided o
he in e - ela ionship be ween hese di e en dimensions.
Key wo ds: Cash Managemen , Business P ocess Reenginee ing, ERP Sys ems.
1. INTRODUCTION
Any o ganiza ion, big o small, wi h o wi hou a p o i mo i e, public o p i a e,
manages he mone a y lows which ake place in he de elopmen o i s ac i i y.
Since hese lows a e essen ial o he co ec wo king o any o ganiza ion, Cash
Managemen (hence o h, CM) has become a c i ical unc ion (Ma ino, 1998).
The In e na ional Jou nal o Digi al Accoun ing Resea ch
Vol. 4, N. 7, 2004, pp. 31-55
ISSN: 1577-8517
Submi ed Sep embe 2003
Accep ed Ap il 2004
32
33
Addi ionally, we iew Managemen Accoun ing in a b oad sense, as an
in o ma ion sys em ha mus supply ele an in o ma ion o he business
manage s. So, CM would be included in his de ini ion, since i ep esen s a
p ope ly cons i u ed managemen ac i i y ha looks a e mone a y lows. Likewise,
Managemen Accoun ing is no an independen depa men in he o ganiza ion
wi h s ic ly de ined limi s and a ole independen o he ones de eloped by o he
unc ions, bu i ex ends h ough all he o ganiza ion, impac ing on di e en
o ganiza ional le els and a eas, and supplies wi h hem in o ma ion o hei
planning and con ol asks.
Basically, CM aims o in es mone a y unds when he e a e su pluses and o
ob ain hem when he e a e de ici s (Hellia , 1998). This ask is he esponsibili y
o T easu y Depa men (hence o h, TD) which has ex ended i s ac i i ies (G ei e ,
2001), in o de o pa icipa e mo e in business s a egy de elopmen (Phillips,
1997). In his way, TD has e ol ed om he ealiza ion o ou ine asks, such as
he ansac ions egis e and p ocessing, o be a depa men which makes decisions
on mone a y lows, inancial ins umen s and isks, ela ionships wi h he inancial
en i ies and in es o s (Teigen, 2001). In his sense, we can e e o an e olu ion
du ing he 1980s om an Ope a i e T easu y o a Managemen T easu y (To e,
1998; Heywood, 1999).
Se e al ci cums ances ha e con ibu ed o his e olu ion, among hem
(Heywood, 2000; Mulligan, 2001): (1) he highe emphasis on he e icien use
o capi al; (2) he impe a i e o c ea ing alue o he sha eholde s h ough an
app op ia e managemen o inancial isks; (3) he inno a ion in he inancial
ins umen s; and (4) he in o ma ion echnologies (hence o h, IT) ad ance.
Also, he specialized li e a u e usually highligh s he con ibu ion o new
IT o he CM cen aliza ion in mul ina ional businesses (La ge, 2001). In his
way, business g oups o companies ha ha e go a decen alized CM can op o
cen alizing i in o de o allow hem o ob ain a global liquidi y posi ion and o
op imize he managemen o hei esou ces.
Among he mos ex ended IT o CM, we can poin ou easu y so wa e, bo h
speci ic and s anda d, elec onic banking (Cha o and O íz, 1996), In e ne banking
(Wilson, 2001), and ERP sys ems (Makela, 1999; B andman, 2000; Thu s on,
2000). These echnologies ha e enabled, o example, he de elopmen o collec ion
The In e na ional Jou nal o Digi al Accoun ing Resea ch Vol. 4, N. 7
32
33
and paymen ins umen s o business ansac ions and he es ablishmen o close
ela ionships be ween companies and inancial en i ies.
On he o he hand, new IT cons i u e he c i ical elemen o Business P ocess
Reenginee ing (Da enpo , 1993a) whose a ge is o make d as ic imp o emen s
in o ganiza ional pe o mance h ough he edesign o business p ocesses. In he
1990s, his concep o eenginee ing has been he ocus o a g ea deal o a en ion
om esea che s ep esen ing di e en disciplines (Ea l, 1994). Speci ically, Sco
(1993), Sagne (1997) and B azzale and Milligan (1998) highligh he con ibu ion
ha eenginee ing can make o he CM e olu ion h ough he imp o emen o
i s p ocesses. Ne e heless, he de elopmen o a eenginee ing p ojec implies
an o ganiza ional change p ocess which has signi ican epe cussions on di e se
dimensions o o ganiza ions. Fu he mo e, hese epe cussions a e no always
posi i e and he p ojec may ail (G o e e al., 1995).
In he 1990s, he li e a u e abou CM and i s e olu ion enabled by new IT has
been de eloped (Ma ino, 1998), as well as a widesp ead li e a u e abou business
p ocess eenginee ing (Thong e al., 2003). Howe e , he combined s udy o bo h
esea ch opics has been sca cely ocused as epe cussions o o ganiza ional change
induced by he p ocess eenginee ing o implemen a new IT (speci ically an ERP
sys em) on he TD and i s p ocesses ha e no been analyzed in dep h. Basically, he
specialized li e a u e abou CM and eenginee ing has ocused on he echnological
dimension o he change, bu his li e a u e has no ocused on o ganiza ional and
human dimensions ha a e also e y impo an o enable success ul. In his pape
we add ess his issue by ocusing on he CM cen aliza ion p ocess induced by his
ype o o ganiza ional change which now ep esen s a ma ked end in business
g oups (Mulligan, 2001).
In o de o achie e ou aim, we ha e s uc u ed he pape as ollows. The
nex sec ion ou lines he esea ch design and he esea ch p ocess. The hi d
sec ion p esen s he heo e ical app oach o CM, he con ibu ion o in o ma ion
echnologies o CM and an analysis o he change p ocess induced by hei
implemen a ion h ough a eenginee ing app oach. The ou h and i h sec ions
desc ibe and analyze, espec i ely, he case s udy esul s o a Spanish elec ici y
company ha edesigned i s economic- inancial p ocesses in o de o implemen
an in eg a ed in o ma ion sys em. The six h sec ion p esen s some concluding
commen s and makes sugges ions o u u e esea ch.
Escoba , Cullen & González
Impac s o he Implemen a ion o ERP Sys ems on Cash Managemen
34
35
2. RESEARCH DESIGN
In o de o p o ide empi ical e idence o he change p ocess, we ha e
unde aken a longi udinal case s udy. Following Pe ig ew (1997), we ha e
dis inguished se e al analysis le els (indi idual, depa men , o ganiza ion and
business g oup) and we ha e analyzed he empo al in e connec ions o he change
p ocess, adop ing a holis ic pe spec i e. This has allowed us o di ec ly obse e
he s udied o ganiza ion, o ob ain a ich desc ip ion o he change p ocess and o
use mul iple sou ces o collec ing e idence o e a long pe iod o ime, emb acing
he social, poli ical and his o ical con ex o he analyzed phenomenon (Yin, 1987;
Scapens, 1990).
The p incipal in o ma ion sou ces we e: (1) pa icipan obse a ion, du ing
one yea when one o he esea che s wo ked in he TD, (2) 52 semi-s uc u ed
in e iews wi h employees o he TD and o he unc ional a eas (such as
Accoun ing, Comme cial, In e nal Con ol, In e nal Audi ing, In o ma ion Sys em,
and employees o he pa en company), (3) non-pa icipan obse a ion du ing 3
isi s in each mon h unde aken du ing he pe iod 1997-2002, (4) he analysis o
he in o ma ion sys ems oge he wi h i s use s, and (5) in o mal discussions wi h
employees ha we e e y impo an as i allowed us o compa e he in o ma ion
collec ed h ough he o mal sou ces. Also, hese in o mal discussions allowed us
o p obe deepe in o he poli ical, social, his o ical and o ganiza ional con ex o
he s udied o ganiza ion.
In addi ion o he abo e sou ces o da a, addi ional in o ma ion was ga he ed
om analysis o documen s such as he in e nal jou nals and bulle ins o Ene gy and
Spain ield G oup, annual inancial epo s o hese companies, se e al documen s
abou he new in o ma ion sys em, in e nal documen s abou he TD, and epo s
abou he CM cen aliza ion in he Spain ield G oup. We also had access o he
In ane o he o ganiza ion whe e we we e able o collec news and de elopmen s
in he o ganiza ional change p ocess.
The combina ion o hese sou ces has con ibu ed o he in e nal alidi y
(Yin, 1987) o ou s udy, since i has allowed us o iangula e he collec ed
in o ma ion.
The In e na ional Jou nal o Digi al Accoun ing Resea ch Vol. 4, N. 7
34
35
3. THEORETICAL APPROACH
CM can be de ined as “ he g oup o s a egic and o ganiza ional measu es ha
a ec s he mone a y lows and, by de ini ion, he inancial esul s o an o ganiza ion”
(López, 1996: 15). Since o he depa men s can a ec he mone a y lows besides
TD, López dis inguishes be ween In e nal CM which is ela ed o he ac i i ies
de eloped by TD, and Ex e nal CM which ela es o he ac i i ies ca ied ou by
o he depa men s ha in luence he mone a y lows o he o ganiza ion. In u n,
In e nal CM can be di ided in o: (1) Ope a i e CM ha inco po a es he planning,
o ecas ing and con ol o he banking condi ions and he collec ion and paymen
ealiza ion; and (2) Financial CM ha emb aces he liquid unds managemen , he
de ici co e ing, he su plus in es men , he isk hedging and he nego ia ion wi h
inancial en i ies (To e, 1998).
TD is esponsible o In e nal CM and his jus i ies i s exis ence as an
au onomous depa men ha is sepa a ed om Accoun ing in la ge o ganiza ions
(Hellia , 1998).
CM is mainly cha ac e ized by cons i u ing a managemen in alue da e
ha es s in h ee pilla s: (1) he nego ia ion, bo h wi h he ex e nal agen s and
wi h o he depa men s o he o ganiza ion; (2) he con ol, bo h o da a on i s
ansac ions ha ha e been egis e ed by inancial en i ies and o he accu acy o
i s cash o ecas s; and (3) he in o ma ion ha mus be as accu a e and cu en
as possible. This managemen in alue da e allows he TD o ob ain he liquidi y
posi ion ha e lec s he cash unds ha a e a ailable o he o ganiza ion o mee
i s paymen commi men s.
In he case o business g oups, o ganiza ions can ob ain a global liquidi y
posi ion h ough he cen aliza ion o hei CM p ocesses. Likewise, he CM
cen aliza ion can p o ide he pa en company wi h mo e in o ma ion and inc eased
con ol on he CM ca ied ou by he subsidia ies, as well as a educ ion o he
in o ma ion sys ems, s uc u e and pe sonnel cos s. Howe e , cen aliza ion incu s
addi ional cos s such as he necessa y in es men o i s implemen a ion (Mulligan,
2001).
In o de o unde s and he na u e o CM cen aliza ion in business g oups, To e
(1998) uses wo c i e ions o dis inguish ou cen aliza ion concep ual models:
Escoba , Cullen & González
Impac s o he Implemen a ion o ERP Sys ems on Cash Managemen

36
37
(1) he concen a ion g ade o Ope a i e CM and (2) he cen aliza ion g ade o
Financial CM, as he ac i i ies ha a e emb aced by each ype o CM a e ca ied
ou by he di e en subsidia ies o by a T easu y cen e o he whole g oup (see
igu e 1 below). In his way, Ope a i e CM is said o be deconcen a ed when he
ac i i ies ha i emb aces a e ca ied ou by he di e en subsidia ies. Al e na i ely,
i hese ac i i ies a e ca ied ou by a T easu y cen e, Ope a i e CM is said o be
concen a ed. The same is applicable o Financial CM in e ms o decen alized
o cen alized Financial CM, espec i ely.
Ope a i e CM
Deconcen a ed Concen a ed
Financial
CM
Decen alized Deconcen a ed and decen alized CM Concen a ed and decen alized CM
Cen alized Deconcen a ed and cen alized CM Concen a ed and cen alized CM
Figu e 1. Concep ual models o easu y cen aliza ion (To e, 1998).
Besides hese concep ual models, we can dis inguish h ee o he s uc u al ones
o he cen aliza ion o TD ac i i ies: (1) T easu y Coo dina ion, in which he TD
o he pa en socie y es ablishes he guidelines ha mus be ollowed by he TD
o he g oup subsidia ies; (2) T easu y Uni ica ion, whe e he TD o he pa en
socie y manages he T easu y o he g oup while he subsidia ies ei he donʼ ha e
hei own TD o hei powe s a e signi ican ly educed; and (3) T easu y Sha ed
Se ices Cen e which is a cen e independen o he pa en socie y ha ca ies
ou CM o he whole g oup (Malcolm, 1999).
The new IT, such as easu y so wa e, elec onic banking, In e ne banking
and ERP sys ems, a e allowing business g oups o ca y ou he CM cen aliza ion.
Among he app oaches ha can be used o implemen his new IT, he p ocess
eenginee ing has achie ed a wide di usion be ween o ganiza ions in he 1990s.
This app oach is cha ac e ized o being (Hamme and Champy, 1993; Hamme and
S an on, 1995): (1) undamen al, since i enables he analysis o he ules in which
he managemen o he o ganiza ion ope a es; (2) adical, since i ejec s he cu en
p ocesses and begins again; (3) spec acula , whe e implemen ed, o ganiza ions ge a
quan i a i e leap in hei pe o mance; and (4) p ocesses, because he eenginee ing
ocuses on hese and no on he o ganiza ional unc ions.
The In e na ional Jou nal o Digi al Accoun ing Resea ch Vol. 4, N. 7
36
37
The implemen a ion o edesigned p ocesses based on new IT in oduces
adical o ganiza ional change ha is mani es ed in di e en dimensions (Da enpo ,
1993b): (1) echnological, as i p oposes he in oduc ion o new in o ma ion
echnologies and he e-s uc u ing o di e en en e p ise in o ma ion sys ems; (2)
o ganiza ional, h ough hie a chical s uc u e le elling, changes in o ganiza ional
cul u e a ou ing inno a ion, measu es and incen i es implemen a ion, managemen
by p ocesses, he employees empowe men , e c.; and (3) human, as employees
will expe ience changes in hei wo king way, oles and esponsibili ies, decisions
making, no ms and alues, e c.
Due o he impo ance o IT o he CM de elopmen and he con ibu ion ha
IT can make h ough he eenginee ing, we conside ha is necessa y o p o ide a
iche desc ip ion o he p ocesses a wo k, mainly in ela ion o he o ganiza ional
and social aspec s implied in he o ganiza ional change ha is gene a ed.
4. THE CASE OF ENERGY
Ene gy (alias o a eal o ganiza ion) was chosen by us o wo main easons:
(1) i s ele ance in he Spanish business s uc u e; and (2) i s adap a ion o he
pu pose o ou esea ch, since he TD o Ene gy had o edesign i s CM p ocesses
o implemen he SAP R/3 sys em, and his caused signi ican changes in his
Depa men du ing he pe iod o in es iga ion.
Ene gy ope a ed in he Spanish Elec ici y Sec o which ini ia ed i s
libe aliza ion p ocess when he Elec ici y Sec o Law was app o ed in 1997. To
con on he bigge compe ence in he sec o , Spain ield G oup acqui ed se e al
Spanish elec ici y companies, Ene gy among hem, and implemen ed he SAP R/3
sys em in he economic- inancial a ea o i s subsidia ies. The Spain ield G oup
pu pose was o cons i u e an in eg a ed indus ial g oup and in o de o do his,
he G oup adop ed a eenginee ing app oach.
In he nex sec ions, we make e e ence in ch onological o de o he mos
impo an changes ha he TD o Ene gy con on ed be ween 1996 and 2002 and
hei epe cussions. These changes we e: he implemen a ion o Sys em-Cash, he
implemen a ion o he easu y SAP R/3 module, and he implemen a ion o he
Concen @ P ojec (see igu e 2).
Escoba , Cullen & González
Impac s o he Implemen a ion o ERP Sys ems on Cash Managemen
38
39
Figu e 2. O ganiza ional changes in he TD o Ene gy
4.1. Implemen a ion o sys em-cash
The TD was a pa o he Financial A ea which i sel was loca ed wi hin he
Economic and Financial Gene al Di ec ion o Ene gy. This TD sha ed he Ene gy
o ganiza ional cul u e ha was mainly pa e nalis ic. In his sense, he employees
enjoyed s able jobs wi h good sala ies and good wo king condi ions. They we e
p oud o being pa o Ene gy and, he e o e, e y loyal and pa io ic o he
company.
A easu y s anda d so wa e was implemen ed in he TD o Ene gy a he
beginning o 1996. This applica ion, which was called Sys em-Cash, was eques ed
by he employees hemsel es o au oma e and o speed up hei ac i i ies. The
eceip o he paymen and collec ion da a ha came om o he depa men s1 was
ob ained h ough in e aces designed o his e ec , while elec onic banking was
implemen ed o communica ion wi h inancial en i ies.
The e o e, he CM o Ene gy was suppo ed by his sys em ha esul ed in
se e al ad an ages, among hem: (1) he ac i i ies au oma ion, like he da a eco d
o in e es s liquida ion con ol; (2) an inc ease o he pe cen age o econciled
da a, since he sys em inco po a ed new econcilia ion modali ies and i enabled
conside a ion o mo e pa ame e s han he p e ious sys em; (3) he possibili y
o analyzing and simula ing ans e s in he c edi policies managemen , as well
as o simula e ope a ions in sho and long e m inancing o in es men wi h
he conside a ion o di e en ypes o easu y o ecas s; (4) he supply o mo e
comple e in o ma ion ha could be elec onically p ocessed; and (5) he inc eased
speed o in o ma ion access, mainly due o elec onic banking.
1 Mainly Comme cial, In e nal Con ol and Pe sonnel.
The In e na ional Jou nal o Digi al Accoun ing Resea ch Vol. 4, N. 7
38
39
The CM p ocesses o Ene gy wi h Sys em-Cash we e as ollows: (1) Bank
econcilia ion which was exclusi ely ca ied ou by TD s a ing om he da a
supplied by inancial en i ies and he eco ded ones in he Ene gy accoun ing
sys em; (2) Reco d o bank da a in he accoun ing sys em which was ano he
applica ion independen o he easu y one; (3) T easu y posi ion managemen
which suppo ed he managemen o c edi policies balances and ca ying ou he
c edi ans e s be ween banks o op imize hem; (4) Con ol o bank spending,
mainly he commissions and in e es s by disposed balances; (5) Nego ia ion wi h
inancial en i ies, om he c edi policies condi ions ha Ene gy had subsc ibed
(on he whole 17 policies wi h he same numbe o inancial en i ies by an amoun
o 273.47 million eu os), un il he auc ions be ween inancial en i ies o pay he
axes and Social Secu i y; and (6) Elabo a ion and e ision o easu y budge
s a ing om his o ic in o ma ion and he o ecas s o TD and o he depa men s
ha ca ied ou collec ions and paymen s.
4.2. Implemen a ion o he easu y SAP R/3 module
In spi e o he employee sa is ac ion wi h Sys em-Cash, when Ene gy was
acqui ed by Spain ield G oup, Spain ield o ced i s subsidia ies o implemen
SAP R/3. This p ojec was de eloped in he TD by a ipa i e eam ha ope a ed
om he beginning o 1998 o he beginning o 1999. This eam consis ed o a
compu e specialis o Ene gy, a SAP consul an and an use o he TD and hey
we e suppo ed by a cen alized eam in he pa en socie y o Spain ield G oup.
The concep ual design o he new easu y sys em and he p ocess edesign we e
ca ied ou by his eam, al hough his ask was limi ed by he p ese unc ionali ies
o SAP R/3. In his espec , o ins ance, he new easu y sys em didnʼ en isage
ha he bank ex ac s we enʼ elec onically ecei ed, since his wasnʼ impo an
o o he subsidia ies o he Spain ield G oup in which he clien s domicilia ion
was abou 100%. Howe e , his ac was impo an o Ene gy due o he habi s
o i s clien s, mainly in he u al a eas2.
2 A he end o he 1990s, abou 30% o Ene gy clien s we en’ domicilia ed. Mos o u al a eas clien s
adi ionally paid hei eceip s a he paying-in desk a hei Sa ing Banks which didn’ ha e connec ion o
elec onic bank and, he e o e, his in o ma ion was supplied by Comme cial on a magne ic ape. In his sense,
an in e iewee sugges ed ha “ his p oblem con inued a e he SAP implemen a ion un il Spain ield G oup
unde ook he Ze o Me allic P ojec which p omo ed he domicilia ion and added ano he speci ic u ili y”.
Escoba , Cullen & González
Impac s o he Implemen a ion o ERP Sys ems on Cash Managemen
46
47
This sys em homogenized he easu y p ocesses and inc eased hei e iciency
a g oup le el. Fo i , Spain ield G oup u ilized in e nal benchma king ha can
be conside ed o be a key eenginee ing ool (Fu ey, 1993; Ha ison and P a ,
1993; Ruchala, 1995). In his sense, he eenginee ing eam analyzed he sys ems
o each subsidia y, compa ed he way in which each one de eloped he di e en
easu y ac i i ies and chose he mos app op ia e sys em (see able 1 below). The
chosen sys em belonged o a subsidia y which had implemen ed some speci ic
de elopmen s in he easu y SAP R/3 module. As a consequence, he Spain ield
G oup go he easu y sys em uni ica ion ha in u n allowed he homogeniza ion
o i s p ocesses and he in o ma ion in eg a ion.
Recep ion, accoun ancy and econcilia ion o bank ex ac
Ene gy
The ex ac s a e ecei ed o compa e he banking in o ma ion wi h he en e p ise
accoun ing. The iden i ied da a and some special ones (Tele ónica, accoun s sweeping) a e
au oma ically coun ed.
Subsidia y X All he ex ac s a e coun ed.
Subsidia y Y
The ex ac s a e ecei ed o compa e he banking in o ma ion wi h he en e p ise
accoun ing. The iden i ied da a and some special ones (Tele ónica, accoun s sweeping) a e
au oma ically coun ed.
Obse a ions
The Subsidia y X simul aneously ca ies ou he econcilia ion and accoun ancy p ocesses,
while Ene gy and Subsidia y Y sepa a e bo h p ocesses, since hey a e ca ied ou in wo
di e en sys ems.
T easu y posi ion and es ima e
Ene gy The easu y posi ion is ob ained s a ing om he inancial in o ma ion o he company.
Subsidia y X The in o ma ion con ained in some ansi o y accoun s is added o he inancial
in o ma ion o ge he easu y posi ion.
Subsidia y Y The in o ma ion o he ex ac s is compa ed wi h he inancial in o ma ion o he company.
Then, he no-coun ed da a a e eco ded o adjus he easu y posi ion.
Table 1. Example o in e nal benchma king in he easu y p ac ices (Sou ce: In e nal Documen s o he TD).
The ERP echnology allowed he consolida ion o he pilla s o he CM in
alue da e as signalled by Valls (1996): (1) nego ia ion, bo h wi h he es o
he depa men s ha sha ed he same in o ma ion sys em, and wi h he inancial
en i ies h ough a mo e ad anced elec onic banking. Howe e , he Spain ield
G oup educed he numbe o inancial en i ies wi h which i ope a ed and his
con i ms he end signalled by MacDonald (2001) and Teigen (2001), among
o he s; (2) con ol, since his echnology in oduced mo e sophis ica ed ools o
ca y ou , o ins ance, he p ocess o ecep ion, accoun ancy and econcilia ion
o bank ex ac s; and (3) he quasi online in o ma ion p o ided by he inancial
The In e na ional Jou nal o Digi al Accoun ing Resea ch Vol. 4, N. 7

46
47
en i ies and o he depa men s o he o ganiza ion. Besides, his in o ma ion was
a ailable o he whole G oup.
5.2. Repe cussions on he o ganiza ional dimension
Also, he implemen a ion o he easu y SAP R/3 module had epe cussions
on he o ganiza ional dimension o he TD o Ene gy. In he i s place, we can
highligh a TD sepa a ed om Accoun ing (Hellia , 1998), howe e hey had a close
ela ionship as he banking in o ma ion was daily expo ed om Sys em-Cash o
he Accoun ing sys em. Also, he coo dina ion be ween bo h a eas inc eased when
SAP R/3 was implemen ed as hey sha ed he same echnological pla o m.
The CM p ocesses o Ene gy we e cen alized in he TD o he Spain ield G oup
as usually happens in business g oups (La ge, 2001). A he beginning, ollowing
he concep ual models p oposed by To e (1998), he Spain ield G oup implemen ed
a deconcen a ed and cen alized model, as he TD o he subsidia ies con inued
ca ying ou he ansac ions p ocessing and he con ol ( o example, he unds
ans e s eco d, he bank econcilia ion and he in e es s liquida ion con ol), while
he managemen ac i i ies ( o example, he nego ia ion wi h inancial en i ies,
he de ici s co e ing and he su plus in es men ) we e unde aken by he TD o
Spain ield G oup which also inc eased i s con ol on he pe iphe al TD. This was
e iden in he wide epo ing and he s ic e and o malized p ocedu es ha hese
TD had o ca y ou . The o ganiza ional s uc u e adop ed o suppo his easu y
concep ual model was T easu y Coo dina ion.
In 2000, he Spain ield G oup concen a ed he CM p ocesses in he pa en
socie y. This supposed a concep ual model change, as he easu y became
concen a ed and cen alized. In his way, he managemen ac i i ies and he
ansac ions p ocessing we e ca ied ou by he TD o he pa en socie y. Fo i ,
he o ganiza ional s uc u e o he G oup T easu y e ol ed owa d he T easu y
Uni ica ion, speci ically, owa d a Co po a e T easu y ha caused a d as ic educ ion
o he TD o he subsidia ies a he end o 2001. La e , hese depa men s we e
de ini i ely supp essed.
In his way, he TD o Ene gy s opped: (1) ecei ing he in o ma ion abou
he di e en cu en accoun s by elec onic banking and, he e o e, eco ding he
Escoba , Cullen & González
Impac s o he Implemen a ion o ERP Sys ems on Cash Managemen
48
49
da a in he sys em; (2) ca ying ou he ans e s be ween he c edi policies o
op imize hei balances; (3) econcilia ing he accoun ing and banking in o ma ion;
(4) es ima ing he easu y posi ion o Ene gy, since now an only easu y posi ion
was ob ained o he whole G oup; and (5) nego ia ing wi h inancial en i ies.
S a ing om hen, he Co po a e T easu y o Spain ield G oup was esponsible
o all o hese ac i i ies.
The de ini i e cen aliza ion and concen a ion o he CM p oduced signi ican
bene i s, bu also i esul ed in some cos s (Mulligan, 2001). The main bene i s
we e:
a.- Elimina ion o idle balances due o he consolida ion o all he easu y
posi ions. The o al amoun o he c edi policies subsc ibed by Ene gy was 273.46
million eu os7. This amoun was educed o 42.67 million eu os a e he acquisi ion
o Ene gy by Spain ield G oup. This o ced he TD o Ene gy o adjus u he he
amoun o bank o bank unds ans e s. Also, Spain ield G oup o de ed he TD o
he subsidia ies ha ca ied ou some ans e s be ween hem o a oid he de ici
posi ions.
b.- Financial cos sa ings due o he highe nego ia ion powe o he G oup
in ela ion o inancial en i ies, and he s uc u al cos sa ings, since Spain ield
a ionalized he easu y o ganiza ional s uc u e o he G oup. Howe e hese
sa ings ha enʼ been able o be quan i ied due o he impossibili y o indi idualizing
he e ec s o so many simul aneous changes. In he case o he inancial cos s, an
in e iewee said o us ha : “ he deb sho in e es a e o Spain ield G oup was
educed om 6.5% (in 2000) o 5.85% (in 2001)”.
c.- A mo e eliable con ol o liquidi y due o he es ima ion o a global easu y
posi ion o he G oup. In his sense, an in e iewee said ha : “Be o e, he G oup
had o us he in o ma ion ha hei subsidia ies supplied o i abou hei cu en
accoun s. Now, he pa en socie y is he holde o all he cu en accoun s and i
di ec ly disposes o he unds”.
7 Bank o bank ans e s we e daily ca ied ou by he TD o Ene gy o op imize he balances o hei c edi
policies. The daily amoun o hese ans e s a ely su passed 24 million eu os, he e o e some c edi policies
we e inac i e du ing weeks and e en mon hs because hey we enʼ necessa y. Howe e , hese c edi policies
we enʼ elimina ed because, as he head o ice o he TD said: “They donʼ cos any hing, since hey donʼ ha e
nei he opening commissions o disposi ion commissions. Also, we main ain he ela ionship wi h he di e en
inancial en i ies because hey can be necessa y o us in he u u e”.
The In e na ional Jou nal o Digi al Accoun ing Resea ch Vol. 4, N. 7
48
49
On he o he hand, he main cos o he CM cen aliza ion was he necessi y
o edesign he p ocesses o implemen an in o ma ion sys em ha suppo ed he
model o Co po a e T easu y.
5.3. Repe cussions on he human dimension
As a consequence o he o ganiza ional change, mos o he in e iewees we e in
pa icula conce ned abou Ene gyʼs loss o au onomy and he igidi y o he con ol
p ac iced by he pa en company on hem. In he same sense, he implemen a ion o
he easu y SAP R/3 module and he cen aliza ion o CM also caused a educ ion
in job con en and esul ed in a loss o au onomy expe ienced by he employees o
he TD o Ene gy in hei daily decision making. These ac o s can be iden i ied
as cos s o he CM cen aliza ion (San omá, 2000; Mulligan, 2001).
Likewise, he employee unce ain y du ing his pe iod was exace ba ed by he
limi ed in o ma ion p o ided o he employees abou he di e en o ganiza ional
changes ha we e aking place. This limi ed communica ion is conside ed in he
specialized li e a u e as a signi ican gene a o o esis ance o he change in he
p ocess eenginee ing (S odda d and Ja enpaa, 1995; Guha e al., 1997).
Some employees o he TD a gued ha he Spain ield head o ice had imposed
he new sys em on hem wi hou conside ing hei iews. They claimed ha hey
we e happy wi h he Sys em-Cash applica ion hey we e using p io o he akeo e
and he e o e did no see he need o he easu y SAP R/3 module, which eplaced
he Sys em-Cash applica ion.
Fu he mo e, he employeesʼ pa icipa ion in he p ojec was limi ed o hei
aining on he new sys em and i s u iliza ion. The knowledge and expe ience o he
employees we e no inco po a ed in o he design o he new sys em and his also
con ibu ed o gene a e esis ance o he change (Da enpo and Pe ez-Gua dado,
1999; Ma insons and Chong; 1999). The compu e specialis s and SAP consul an s
ocused only on he echnological aspec s and used he in e nal benchma king as
he main ools exclusi ely ca ied ou he in e nal diagnosis (Ruchala, 1995). As an
use exp essed, “ hey ha e no coun ed on us, hey ha e no asked o ou opinion.
A sys em was bough and implemen ed, and we ha e been ained o use i ”.
Escoba , Cullen & González
Impac s o he Implemen a ion o ERP Sys ems on Cash Managemen
50
51
As a consequence o he abo e, he e was esis ance o he change du ing he
implemen a ion o he new sys em. The in e iewees no ed ha , in gene al, he
esis ance o he change was highe among olde employees han among younge
employees. This esis ance was mainly demons a ed h ough absen eeism a he
aining cou ses and a he p esen a ions abou he new sys em. The employees
howe e la e ecognized he supe io i y o SAP R/3 o e Sys em-Cash and
he e o e accep ed i .
Finally, we ha e o highligh ha he pa e nalis ic na u e o Ene gy, he job
s abili y o he employees, he p ide he employees ha e in he o ganiza ion, we e
all eplaced by a pu ely p o essional ela ionship, insecu i y, unce ain y, con inuous
change and an icipa ed edundancy and eloca ions. All hese c ea ed indi e en
eelings among he employees and e en esen men owa ds he o ganiza ion. The
educ ion in he employees exace ba ed he p oblem as many e e an employees
who had wo ked in he company o mo e han 30 yea s el be ayed.
6. CONCLUDING COMMENTS
Based on ou case s udy, we ha e p o ided e idence o he impac o p ocess
eenginee ing o implemen new IT, speci ically an ERP sys em, on he TD o an
o ganiza ion and i s CM p ocesses. Ou e idence shows ha he implemen a ion
o he easu y SAP R/3 module had signi ican epe cussions no only on he
echnological dimension, bu also he o ganiza ional and human dimensions
o he TD. Also, he e is e idence o in e - ela ionships be ween he di e en
dimensions.
Wi h ega d o he echnological dimension, we demons a e ha he new
easu y sys em was implemen ed o homogenize he CM p ocesses o he G oup
and o in eg a e hese p ocesses wi h he ones ca ied ou by o he depa men s,
such as Accoun ing. Likewise, he easu y SAP R/3 module allowed, among o he
hings, an inc ease in he e iciency o he CM p ocesses and a consolida ion o
he pilla s o he CM in alue da e, ha is o say, nego ia ion, con ol and online
in o ma ion.
Rega ding he o ganiza ional dimension, he new easu y sys em acili a ed he
change o he easu y concep ual model as he G oup changed om a deconcen a ed
and cen alized model o a concen a ed and cen alized model o CM. Also, he
The In e na ional Jou nal o Digi al Accoun ing Resea ch Vol. 4, N. 7
50
51
G oup changed i s o ganiza ional s uc u e o easu y since a Co po a e T easu y
was es ablished ins ead o he TD o he subsidia ies ha we e inally supp essed.
As a consequence, he G oup go an single global easu y posi ion, inancial cos
sa ings, and a mo e eliable con ol o i s liquidi y posi ion.
On he o he hand, he eenginee ing o CM p ocesses o implemen he
easu y SAP R/3 module caused loss o jobs ha in u n esul ed in he loss o
us and loyal y o he employees o he company, and unce ain y be ween he
employees who also expe ienced eelings o anguish, impo ence, con o mism and
e en esen men . In conclusion, Ene gy los i s pa e nalis ic o ganiza ional cul u e.
In his sense, we conclude ha , based on ou case s udy, he impac s o he analyzed
o ganiza ional change on he human dimension o he o ganiza ion depend on bo h
he con en o he change and he way in which he change is implemen ed. In he
case o he TD o Ene gy, he human dimension wasnʼ conside ed by he people
esponsible o he implemen a ion o SAP R/3 and his caused a highe esis ance
o he change. This lack o pa icipa ion in he implemen a ion o eenginee ing
p ojec s has been men ioned as a eason o he ailu e o such p ojec s (G o e e
al., 1995). Howe e , in ou case s udy, he implemen a ion o SAP R/3 in he TD
canʼ be classi ied as a ailu e as he G oup go i s objec i e. Howe e , we can say
ha he nega i e epe cussions o he change on he employees could ha e been
minimized h ough he adop ion o measu es such as a wide communica ion o
a highe pa icipa ion o he employees in he eenginee ing p ojec (Guha e al.,
1997; Ma insons and Chong; 1999). These measu es we enʼ p esen in Ene gy
and hey could ha e enabled “a mo e human eenginee ing” (Coope and Ma kus,
1995).
Fu he mo e, he case o Ene gy has con i med some signi ican aspec s abou
he CM cu en e olu ion, such as he necessa y ela ionship be ween T easu y and
Accoun ing (Hellia , 1998), he highe o ien a ion o he CM owa d managemen
asks (To e, 1998; Heywood, 1999), he ein o cemen o he ela ionship be ween
o ganiza ions and inancial en i ies (Teigen, 2001), al hough wi h a lowe numbe
o hem (MacDonald, 2001), and he end in la ge business g oups owa ds he
CM cen aliza ion (La ge, 2001; Mulligan, 2001).
In e ms o u u e esea ch, we see an oppo uni y o u he analyse he
o ganiza ional change gene a ed by he p ocess edesign o implemen o he IT
Escoba , Cullen & González
Impac s o he Implemen a ion o ERP Sys ems on Cash Managemen

52
53
sys ems in he TD such as he In e ne banking o he wo k low echnology, as well
as o analyze he con ibu ion o hese IT sys ems o he CM e olu ion. Likewise,
we can concen a e u he on he o ganiza ional change gene a ed by he CM
p ocess ou sou cing o he es ablishmen o easu y sha ed se ices cen es due
o hei cu en di usion in business g oups.
Speci ically o he de elopmen o he esea ch on eenginee ing, we should
conside bo h he echnological dimension o his change ype and he o ganiza ional
and human dimensions ha complemen i . In his espec , he combined
conside a ion o hese dimensions is sca cely p esen bo h in he p o essional
en i onmen , whe e he ailu e pe cen age o eenginee ing is si ua ed be ween
50% and 70% o eenginee ing p ojec s (Kim and Kim, 1998; Maye and DeWi e,
1999) due mainly o he absence o a co ec change managemen (G o e e al.,
1995), and in he academic en i onmen as he esea ch is mainly ocused on he
echnological dimension.
7. REFERENCES
BRANDMAN, J. (2000): “S eamlining he T easu y Func ion”, Global Finance,
ol. 14, n. 8: 51-52.
BRAZZALE, J.; MILLIGAN, L. (1998): “Adding Value by Reenginee ing
T easu y”, TMA Jou nal, ol. 18, n. 5: 6-12.
CHARRO, A.M.; ORTÍZ, J.F. (1996): “La Función de Teso e ía en la Emp esa.
Banca Elec ónica y Cash Managemen ”, Bole ín de Es udios Económicos, ol.
51, n. 157: 129-164.
COOPER, R.; MARKUS, M.L. (1995): “Human Reenginee ing”, Sloan
Managemen Re iew, ol. 36, n. 4: 39-50.
DAVENPORT, T.H. (1993a): “Need Radical Inno a ion and Con inuous
Imp o emen ?. In eg a e P ocess”, Planning Re iew, ol. 21, n. 3: 6-12.
DAVENPORT, T.H. (1993b): P ocess Inno a ion: Reenginee ing Wo k h ough
In o ma ion Technology. Ha a d Business School P ess, Bos on.
DAVENPORT, T.H.; PEREZ-GUARDADO, M.A. (1999): “P ocess Ecology: A
The In e na ional Jou nal o Digi al Accoun ing Resea ch Vol. 4, N. 7
52
53
New Me apho o Reenginee ing-O ien ed Change”, in D.J. Elzinga, T.R. Gulledge
and C. Lee [eds.]: Business P ocess Reenginee ing: Ad ancing he S a e o he
A , Kluwe Academic Publishe s, Massachuse s: 25-42.
EARL, M.J. (1994): “The New and he Old o Business P ocess Redesign”, Jou nal
o S a egic In o ma ion Sys ems, ol. 3, n. 1: 5-22.
GREIFER, N. (2001): “Re ising T easu y Managemen S a egies”, The Ame ican
Ci y & Coun y, ol. 116, n. 11: 12.
GROVER, V.; JEONG, S.R.; KETTINGER, W.J.; TENG, J.T.C. (1995): “The
Implemen a ion o Business P ocess Reenginee ing”, Jou nal o Managemen
In o ma ion Sys ems, ol. 12, n. 1: 109-144.
GUHA, S.; GROVER, V.; KETTINGER, W.J.; TENG, J.T.C. (1997): “Business
P ocess Change and O ganiza ional Pe o mance: Explo ing an An eceden Model”,
Jou nal o Managemen In o ma ion Sys ems, ol. 14, n. 1: 119-154.
HAMMER, M.; CHAMPY, J. (1993): Reenginee ing he Co po a ion: A Mani ies o
o Business Re olu ion. Ha pe Business, New Yo k.
HELLIAR, C. (1998): “Managemen Con ol o he T easu y Func ion”, Pape
p esen ed a he 21s Annual Cong ess o he Eu opean Accoun ing Associa ion,
An we p, Belgium.
HEYWOOD, D. (1999): “T easu y Issues: Looking A ound, Lookink Ahead”,
Aus alian CPA, ol. 69, n. 5: 36-37.
HEYWOOD, D. (2000): “The T easu e Role: Looking o New Challenges”,
Aus alian CPA, ol. 70, n. 3: 36-38.
KIM, K.H.; KIM, Y.G. (1998): “P ocess Re e se Enginee ing o BPR: A Fo m-
Based App oach”, In o ma ion & Managemen , ol. 33, n. 4: 187-200.
LARGE, J. (1999): “How he Eu o Has Helped Liquidi y Managemen ”, Co po a e
Finance, n. 174: 38-47.
LARGE, J. (2001): “To Decen alize o No o Decen alize”, Co po a e Finance,
n. 198: 7-14.
Escoba , Cullen & González
Impac s o he Implemen a ion o ERP Sys ems on Cash Managemen
54
55
LÓPEZ, F.J. (1996): Manual del Cash Managemen . Cómo Ob ene Bene icios
Manejando Mejo su Dine o. Deus o, Bilbao.
MACDONALD, C. (2001): “Cash Manage s wi hou F on ie s”, La in inance, n.
126: 27-29.
MAKELA, K. (1999): “In eg a ion and S aigh -Th ough P ocessing: The Pla o m
o S a egic T easu y Managemen in he Thi d Millennium”, A p Exchange, ol.
19, n. 6: 60-63.
MALCOLM, I. (1999): “Sha ed Se ices: Re- un o an Old Mo ie o Pa o a
Con inuing E olu ion”, Managemen Accoun ing (CIMA), ol. 77, n. 11: 32-34.
MARTINO, R.L. (1998): “T easu y Technology: Ca ing o he Co po a e
Li eblood”, TMA Jou nal, ol. 18, n. 5: 64-66.
MARTINSONS, M.G.; CHONG, P.K.C. (1999): “The In luence o Human Fac o s
and Specialis In ol emen on In o ma ion Sys ems Success”, Human Rela ions,
ol. 52, n. 1: 123-152.
MAYER, R.J.; DeWITTE, P.S. (1999): “Deli e ing Resul s: E ol ing BPR o m
A o Enginee ing”, in D.J. Elzinga, T.R. Gulledge and C. Lee [eds.]: Business
P ocess Reenginee ing: Ad ancing he S a e o he A , Kluwe Academic
Publishe s, Massachuse s: 83-130.
MULLIGAN, E. (2001): “T easu y Managemen O ganisa ion: An Examina ion
o Cen alised Ve sus Decen alised App oaches”, I ish Jou nal o Managemen ,
ol. 22, n. 1: 7-18.
PETTIGREW, A.M. (1997): “Wha is a P ocessual Analysis?”, Scandina ian
Jou nal o Managemen , ol. 13, n. 4: 337-348.
PHILLIPS, A.L. (1997): “T easu y Managemen : Job Responsibili ies, Cu icula
De elopmen and Resea ch Oppo uni ies”, Financial Managemen , ol. 26, n.
3: 69-81.
POWELL, T.C.; DENT-MICALLEF, A. (1997): “In o ma ion Technology
As Compe i i e Ad an age: The Role o Human, Business, and Technology
Resou ces”, S a egic Managemen Jou nal, ol. 18, n. 5: 375-405.
The In e na ional Jou nal o Digi al Accoun ing Resea ch Vol. 4, N. 7
54
55
SAGNER, J. (1997): Cash low Reenginee ing. How o Op imize he Cash low
Timeline and Imp o e Financial E iciency. Amacon, New Yo k.
SANTOMÁ, J. (2000): Ges ión de Teso e ía. Ges ión 2000, Ba celona.
SCAPENS, R. W. (1990): “Resea ching Managemen Accoun ing P ac ice: The
Role o Case S udy Me hods”, B i ish Accoun ing Re iew, ol. 22, n. 3: 259-
281.
SCOTT, M. (1993): “The Vi ual T easu y: Technologically-assis ed Cash
Managemen ”, Co po a e Cash low, ol. 14, n. 12: 28-31.
STODDARD, D.B.; JARVENPAA, S.L. (1995): “Business P ocess Redesign:
Tac ics o Managing Radical Change”, Jou nal o Managemen In o ma ion
Sys ems, ol. 12, n. 1: 81-107.
TEIGEN, L.E. (2001): “T easu y Managemen : An O e iew”, Business C edi ,
ol. 103, n. 7: 23-24.
THONG, J.Y.L., YAP, C.S.; SEAH, K.L. (2003): “A Consolida ed Me hodology o
Business P ocess Reenginee ing”, In e na ional Jou nal o Compu e Applica ions
in Technology, ol. 17, n. 1: 1-15.
THURSTON, C.W. (2000): “In eg a ing T easu y Managemen ”, Global Finance,
ol. 14, n. 7: 49-50.
TORRE, L.J. -Ed.- (1998): Manual de Teso e ía. Ins i u o Supe io de Técnicas
y P ác icas Banca ias, Mad id.
VALLS, J.R. (1996): Fundamen os de la Nue a Ges ión de Teso e ía. Fundación
Con eme al, Mad id.
WILSON, C. (2001): “Cash Managemen Se ices”, Communi y Banke , ol. 10,
n. 5: 22-25.
YIN, R.K. (1989): Case S udy Resea ch: Design and Me hods. Sage Publica ions,
London.
Escoba , Cullen & González
Impac s o he Implemen a ion o ERP Sys ems on Cash Managemen