Measurements of Key Success Factors on Enterprise Resource Planning (ERP) Implementation

Abstract

Competitive Advantage is important thing that have to be considered when implement the ERP system. Most of the organization only gain operational benefit rather than create the competitive advantage. A lot of factors that influenced the success of ERP implementation in order to gain competitive advantage. One of them is the organization maturity level. We classify the organization maturity level into three levels (high to low): strategic, managerial and operational levels. In Indonesia, it is almost 70.95% companies which were implement ERP system in the managerial and operational level. It shown that organization maturity level does not automatically drive the ERP implementation. The result of the study also shows that there is no-pattern of relationship between organization maturity level and ERP implementation success. This implies that the implementation of ERP in those companies have been done trivially. On this study, we applied Spearman rank test (non-parametric) to identify significant relationships among the organization maturity level, implementation approach and ERP implementation. Thirty five respondents from seven companies were chosen as the object of the study, covering four different industrial sectors, namely: telecommunication, manufacturing, automotive and oil & gas companies. Survey result showed that ERP Implementation Approach (X 2) has more significant influence than does the Organization Maturity Level (X 1) on ERP Implementation Success (Y). It is discovered that coefficient correlation between X 1 and Y is 0.252. On the other hand, the coefficient correlation between X 2 and Y is 0.862.