The Relationship of Organization Maturity Level and Enterprise Resource Planning (ERP) Adoption (Case Study: ERP Implementation in Indonesian Companies)
Gede Rasben Dantes

Universitas Pendidikan Ganesha

Abstract

The research was a preliminary study aimed at finding the relationship between the organization maturity level, implementation approach and Enterprise Resource Planning (ERP) implementation success. Seven companies which have implemented ERP system to support their operational were chosen as the object of the study, covering four different industrial sectors, namely: telecommunication, manufacturing, automotive and oil & gas companies. To address the study objectives, a survey of 37 respondents from these 7 companies was conducted. Survey results showed that based on Information System (IS) Roles, 29.05% of the companies were in the strategic level, 22.30% were in the managerial level and 48.65% were in the operational level. This demonstrates that organization maturity level did not automatically drive the organization to implement ERP. Other factors like technology trend, government policy, bank policy, political issue were more dominant factors to drive organization to adopt ERP rather than maturity level. 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. ERP adoption was not administered by a mature plan in the sense that it was not designed in accordance with the IS/IT plan owned by the companies. It is also found that ERP implementation success more caused by implementation strategy rather than the organization maturity level.

Keywords: Enterprise Resource Planning (ERP), Organization Maturity Level, Implementation Approach, ERP Implementation Success

Topic: Optimization Research Based on Local Resources