Strategical and tactical impact on ERP implementation: Case study on ERP implementation in Indonesia

Gede Rasben Dantes, Zainal Arifin Hasibuan

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

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.

Original languageEnglish
Title of host publicationKnowledge Management and Innovation
Subtitle of host publicationA Business Competitive Edge Perspective - Proceedings of the 15th International Business Information Management Association Conference, IBIMA 2010
PublisherInternational Business Information Management Association, IBIMA
Pages1198-1207
Number of pages10
ISBN (Print)9780982148945
Publication statusPublished - 1 Jan 2010
Event15th International Business Information Management Association Conference, IBIMA 2010 - Cairo, Egypt
Duration: 6 Nov 20107 Nov 2010

Publication series

NameKnowledge Management and Innovation: A Business Competitive Edge Perspective - Proceedings of the 15th International Business Information Management Association Conference, IBIMA 2010
Volume2

Conference

Conference15th International Business Information Management Association Conference, IBIMA 2010
Country/TerritoryEgypt
CityCairo
Period6/11/107/11/10

Keywords

  • Competitive advantage
  • ERP implementation
  • Strategical impact
  • Tactical impact

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