TY - GEN
T1 - Strategical and tactical impact on ERP implementation
T2 - 15th International Business Information Management Association Conference, IBIMA 2010
AU - Dantes, Gede Rasben
AU - Hasibuan, Zainal Arifin
PY - 2010
Y1 - 2010
N2 - Changes in technology is always followed by changes in process and sometimes the process change is harder than the technology change itself. Enterprise Resource Planning (ERP) system is one of the software technology that emphasize business tranformation which will lead to process change in its effort to maximize the company's benefit. ERP implementation always give impact to organization, both strategic and tactical. In the organization hierachy, strategical impact affects the top level of organization hierarchy while tactical impact affects the operational and managerial level. The study focuses on the exploration of strategical and tactical impact induced by the implementation of ERP and to find out the corelation among ERP implementation success with the strategical and tactical impact. Thirty-five respondents from 7 companies become the sample that represent four different industrial sectors (oil & service, manufacturing, telecommunication, automotive). It is found that ERP implementation gives more impact on tactical level than on strategical level. This is derived from data analysis using Spearman rank test which shows that ρyx1 = 0.167 (not significant with p<0.05) and ρyx2 = 0.813 (significant with p<0.01). Thus, specific for Indonesian companies, the present study shows that ERP implementation acts only as support toward the core business instead of creating a competitive advantage. The reasons behind this conclusion lie in the fact that the companies only implement standard modules, such as: logistik, sales, financial, production, human resource, maintenance, without considering the application of specific modul (such as: Business Information Warehouse, Business Inteligence, CRM, SCM, etc.) for supporting the company's strategic level. Furthermore, ERP implementations in Indonesia are mainly driven by the technology itself, rather than the company's business needs.
AB - Changes in technology is always followed by changes in process and sometimes the process change is harder than the technology change itself. Enterprise Resource Planning (ERP) system is one of the software technology that emphasize business tranformation which will lead to process change in its effort to maximize the company's benefit. ERP implementation always give impact to organization, both strategic and tactical. In the organization hierachy, strategical impact affects the top level of organization hierarchy while tactical impact affects the operational and managerial level. The study focuses on the exploration of strategical and tactical impact induced by the implementation of ERP and to find out the corelation among ERP implementation success with the strategical and tactical impact. Thirty-five respondents from 7 companies become the sample that represent four different industrial sectors (oil & service, manufacturing, telecommunication, automotive). It is found that ERP implementation gives more impact on tactical level than on strategical level. This is derived from data analysis using Spearman rank test which shows that ρyx1 = 0.167 (not significant with p<0.05) and ρyx2 = 0.813 (significant with p<0.01). Thus, specific for Indonesian companies, the present study shows that ERP implementation acts only as support toward the core business instead of creating a competitive advantage. The reasons behind this conclusion lie in the fact that the companies only implement standard modules, such as: logistik, sales, financial, production, human resource, maintenance, without considering the application of specific modul (such as: Business Information Warehouse, Business Inteligence, CRM, SCM, etc.) for supporting the company's strategic level. Furthermore, ERP implementations in Indonesia are mainly driven by the technology itself, rather than the company's business needs.
KW - Competitive advantage
KW - ERP implementation
KW - Strategical impact
KW - Tactical impact
UR - http://www.scopus.com/inward/record.url?scp=84905088745&partnerID=8YFLogxK
M3 - Conference contribution
AN - SCOPUS:84905088745
SN - 9780982148945
T3 - Knowledge Management and Innovation: A Business Competitive Edge Perspective - Proceedings of the 15th International Business Information Management Association Conference, IBIMA 2010
SP - 1198
EP - 1207
BT - Knowledge Management and Innovation
PB - International Business Information Management Association, IBIMA
Y2 - 6 November 2010 through 7 November 2010
ER -