Measurement of Readiness Levels for Adoption of Enterprise Resource Planning Clouds in Small Medium Enterprise with Net Ready Model

Abstract

Industry 4.0 has changed the way we live, work and interact, creating new opportunities and challenges. To deal with these challenges, SMEs need an application that can integrate and automate SME business processes. Small and Medium Enterprises are very important for Indonesia’s economic growth. The 2016 economic census conducted by the Central Bureau of Statistics stated the rapid economic growth among MSMEs. The more rapid growth of the market, the greater the competition in the market coupled with the current digital era. The study was conducted to measure the readiness of small and medium enterprises in the Bogor area that are engaged in fashion for Cloud ERP adoption. Readiness measurement is done by the Net Ready method which has four variables, namely: Leadership, Governance, Competencies, Technology. The Net Ready method further assesses the readiness to the level of the organization and the results of measurements which each have different value contributions. Governance provides the biggest contribution in the assessment of Net Ready which has a score of 1.06. Competencies provide the second largest contribution which has a score of 0.77. Technology provides the third largest contribution which has a value of 0.72. Leadership makes the smallest contribution in this study which has a score of 0.58, lack of management awareness of integrated information systems to make new business strategies. The total score obtained from the summary of each variable total score produces a value of 3.12. The total score can be categorized as Bogor region SMEs engaged in fashion, quite ready to adopt Cloud ERP.