Determination of ERP Readiness Assessment Using Agile Parameters: A Case Study

Article history: Received: 02 July, 2020 Accepted: 05 August, 2020 Online: 28 August, 2020 At present, in the era of digitization the organizations need Enterprise Resource Planning (ERP) systems to have the ability adapt to changes with rapid response in order to increase the competitive advantage. The fact, many companies have failed to implement ERP which is proven to be not go live on time, so that the implementation value is to be very expensive. For this reason, it is important to consider other methods that can reduce failures in implementing ERP that are reviewed from the perspective of readiness assessment. Based on previous research, there are some challenging on the ERP readiness assessment. We also found that some areas on the ERP readiness that still not explore more serious such as ERP and agile method. Therefore, based on the challenging and open are on the ERP readiness, we will explore more development the framework of ERP readiness assessment using agile parameters to help the industry. The purpose of this research is to identify gaps and propose improvements which are the weaknesses in order to improve performance of the organization. The result of this research is developing the framework using an agile parameter for determination of the ERP readiness assessment with a case study in the textile industry in Indonesia. Hopefully, this research has contribution as a measurement tool for assessing the organizational readiness in order to increase agility in the industry. This research methodology uses the combination of qualitative and quantitative research methods using the NVivo software as a result of FGD data processing and using the Technique for Order Preference by Similarity (TOPSIS) for validation and verification tests.

At present, in the era of digitization the organizations need Enterprise Resource Planning (ERP) systems to have the ability adapt to changes with rapid response in order to increase the competitive advantage. The fact, many companies have failed to implement ERP which is proven to be not go live on time, so that the implementation value is to be very expensive. For this reason, it is important to consider other methods that can reduce failures in implementing ERP that are reviewed from the perspective of readiness assessment. Based on previous research, there are some challenging on the ERP readiness assessment. We also found that some areas on the ERP readiness that still not explore more serious such as ERP and agile method. Therefore, based on the challenging and open are on the ERP readiness, we will explore more development the framework of ERP readiness assessment using agile parameters to help the industry. The purpose of this research is to identify gaps and propose improvements which are the weaknesses in order to improve performance of the organization. The result of this research is developing the framework using an agile parameter for determination of the ERP readiness assessment with a case study in the textile industry in Indonesia. Hopefully, this research has contribution as a measurement tool for assessing the organizational readiness in order to increase agility in the industry. This research methodology uses the combination of qualitative and quantitative research methods using the NVivo software as a result of FGD data processing and using the Technique for Order Preference by Similarity (TOPSIS) for validation and verification tests.
Keywords: Agile ERP Implement Readiness assessment Textile industry

Introduction
Now, more than ever before, technology must provide satisfying services and ensure that everyone can get it the information they need quickly and precisely for the decision making. Thus, technology is changing the way people work towards digitization. Information systems could manage, disseminate, and produce the information that accurate, real-time, and informative in order to the provide attractive services to managerial levels for the decision making. ERP is an integrated information system that allows people to monitor business activities. ERP implementation for the industry is an absolute necessity in improving effective, efficient, and improving organizational performance. With the use of ERP, it allows management of the organization to apply the work method with the paperless principle in which business activities can be monitored online and real-time, so that it can be obtained easily obtain various information quickly, accurately and informally without knowing the time and place. Thus, the application of ERP is very helpful managerial level in making decisions appropriately and quickly. This is a reason for organization to increase technology support in managing business activities. Therefore, the use of ERP systems is fundamental of the organizations in order to improve the performance and have a competitive advantage. However, the reality in implement ERP for the industry tends to experience a failure risk level of up to 40% [1]. Based on the previous research that the critical factors which cause failure in ERP implementation is the readiness assessment ASTESJ ISSN: 2415-6698 [2]. Thus, the adopt agile method in ERP readiness assessment is to be considered. The principle of agile methods that emphasize the collaboration and communication work and responding to changes [3]. For this reason, it is the important to assess the organizational readiness using agile parameters. The agile parameters for ERP can follow changes and increase business value. Even so, suggesting whether the agile method is suitable for ERP implementation in the industry, the authors will carry out further research. This research aims to solve the complexity in ERP implementation by focusing on evaluating ERP readiness using agile parameters to answer the research questions as follows: a. Whether the agile method is suitable for ERP implementation in the industry? b. What kind of the framework is proposed for ERP readiness assessment in the industry?

ERP readiness assessment
The dimensions and factors of agile method are organization, processes, people, and project [4]. The dimensions and factors of agile are shown in the Table 1. The parameters of an agile method are focusing on adaptive and iterative, business needs, on time, collaborating work environment, accountability, responsiveness [5,6]. The authors analyze and compares the framework of previous research from survey literature by comparing the following references, research focus, identification factors, identify the main components as measurement tools, validation methods, and model evaluations. The comparison framework of the classification models for ERP readiness assessment is shown in the Table 2.
Considering the result analyze of previous research which little research provides about the framework of agile ERP readiness assessment in order to increasing the organization agility. Thus, the authors propose the development of a framework for the ERP readiness assessment using agile parameters to find out how effective the framework can reduce ERP complexity. The goal of the readiness assessment is to identify gaps and propose improvements that are weaknesses in order for increasing the organization performance.

ERP readiness factors
Adopting the Literature Review Prisma [12], researchers conducted a search through database searching with the ERP readiness factor. The results of the filtering of the article after reading the abstract and the introduction of the selected articles, then the authors makes a mapping and comparison which is a factor of ERP readiness. From these factors, the authors define and meta analyzes of the factors based on the writing in the article. Then the authors categories the ERP readiness factors into four main dimensions, namely processes, people, organizational, and technology. The four main dimensions are based on the Leavitt Diamond Model [13]. The main dimensions of the Leavitt Diamond Model consist of structure, technology, people, and tasks, with the following explanation: • Structure approach. Is an effort that is applied to improve organizational behavior through increased task performance, such as changes in communication systems, authority systems, workflow systems, structural changes. This is categorized in the organizational. • Technology approach. Respond to technological trends to support significant organizational changes, and problem solving such as work measurement techniques. • Task approach. Refers to the process of producing goods or services, which are categorized as processes. • People approach. Changing the behavior of people in organizations, and changing human behavior that will cause changes to complete tasks, achieve performance, and meet the qualifications criteria of people as needed Based on the literature survey, the authors do a mapping of the ERP readiness factors that affect each of these components. The mapping results show that there are 18 factors that can be considered for these 4 components. The result mapping for the comparison of ERP readiness factors is shown in the Table 3. Skill project team [4,9] 6 Train and education [13,20] Organizational 7 Organization agile [1,4,9,18,20,21] 8 Communication & collaboration [18,22] 9 Project management [16,18,19,22,23] 10 Industry characteristics [24] 11 Change management [14,18,22,25] 12 Strategy planning [15,18,23,24] 13 Organization culture [14,22] Technology 14 ERP implementation [14, 15, 20, 22, [3] 15 Agile method [14,17,20,25] 16 Technological [14] 17 System Integration [14,24] 18 ERP system [14,20,22,23]

Agile for ERP
The agile factors are flexibility, speed, responsiveness, competency, agility, and integration [25]. The mapping result for definition of agile factors depicted in the Table 4.

Factors
Definition ID Paper

Flexibility
Ability to process different products and achieve different objectives with the same facilities [17,20,26] Speed Ability to carry out tasks and operations in shortest possible time [17,20,26] Responsive ness Ability to identify changes and respond quickly [20,26] Competency Extensive set of abilities that provide a basis for productivity, efficiency and effectiveness of a company's activities [17,20,26] Account ability Proves to be the most important catalytic agent in guiding the drivers of organization agility [17,20] Integration Relations between the individual system components, easy & effortless flow of the materials, information & communication between the system components, organizational structures, people, & technology [20] The collaborative & iterative function in the agile method can adapt to changes, simplify processes, move quickly, and work teams. [27]. Besides that, Agile approaches to supply all effectively sequence, quick response, & manage the manufacturing process in order to reduce lead times [27]. Therefore, the agile for ERP can be considered for analysis and carried out further research as a way for reducing the complexity of ERP implementation. Iterative and collaborative of each stage of implementation, thereby making project work more effective and efficient. Based on the explanation of the definition of agile factors, it can be considered to help the stages of the processes for implement ERP for achieving the organization agility.

ERP in textile industry
One of the important roles of ERP for the industry is system integration, which make it possible to reduce repetition of work, thereby increasing work efficiency. This also applies to the textile industry. Supply chain issues in textile activities are a customization of system, typical product, marketplace demand, product variety, product life cycle, customer drivers, profit margins, dominant costs, stockout penalties, information enrichment, and forecasting mechanism [27]. Effective change management scheme including enough staff training is necessary, and clear business vision and understand the scope of installation complexity [28]. ERP for textiles to be able to control the quality of raw materials better, so as to produce finished products according to customer demand, easily obtain various information in real-time, precise, and fast, including in the financial reporting process [6,20,28]. The essence of agile methods is collaborative and effective communication, adaptation & iterative response to change, to overcome the complexity of ERP [29]. The main process in the textile process is routine sequential production processes and each process requires strict control, especially in fabric processing to produce finished fabrics. This is to increase efficiency in the process of textile production. It really requires the role of ERP to monitoring production activities automatically and paperless, so that it can improve the way work more effectively and efficiently.

Research Methodology
This research methodology uses NVivo to analyze qualitative data processing by using the Focus Group Discussion (FGD) method and TOPSIS method is used in order to analyze and rank the weight of each criterion. TOPSIS is a multi-criteria decisionmaking method. TOPSIS determines the ideal solution and the negative-ideal solution, selects the alternative with the shortest distance from the ideal solution and the farthest distance from the negative-ideal solution as the best alternative [29]. FGD is one method for conducting interviews with participating industry experts and professionals, so that they can obtain information and feedback based on their experience and knowledge. TOPSIS method can determine the ranking of factors of each criterion. The results of Nvivo and TOPSIS data processing are expected to better understand the results of data analysis for the answer of the research questions.
TOPSIS is a decision-making method for ranking and prioritizing Multi Criteria Decision Making (MCDM). MCDM was first introduced by [29]. TOPSIS aims to rank using the principle that the chosen alternative has the shortest distance from the positive ideal solution and the farthest distance from the negative ideal solution from a geometric point of view by using the distance between two points to determine the relative proximity of an alternative to the optimal solution. The positive ideal solution is defined as the sum of all the best values that can be achieved by each attribute, while the negative-ideal solution consists of all the worst values achieved for each attribute. The stages of weighting the TOPSIS method are as follows [29]: 1. Building a normalized weighted matrix using the following formula: Building a weighted normalized matrix by multiplying the normalized matrix with the weighting value of entropy weighting, with the normalization formula for the weighting matrix v as follows:

Data Collection
The authors conducted interviews with respondents with the following criteria such as the respondents understanding business processes of the textile industry in Indonesia, the respondents have managerial positions, and understand the process business of ERP Systems. The authors also distribute the questionnaires to users in the industry as validation and further testing. It is hoped that the results of FGD and Questionnaire process will get meaningful feedback and comments and provide solutions to the problems of this research. The characteristic of respondents is shown in the Table 5.

Data Analysis
The Data processing this research begins with the data analysis from the node that to identify problems in dimensions and provide the description based on the list of FGD questionnaires. A list of questionnaires for FGD is shown in Table 6. In conducting interviews, the authors record the interview activities as evidence and for further data processing. then the recording will be transcribed in Microsoft word. Then the authors do data processing using the NVivo application. Based on the factors are identified from the results of data processing, the authors make comparisons with factors from the results of literature studies. After that, the authors build a hierarchy of research models.
Similarly, for a list of questionnaire statements distributed to users for further data management is shown in Table 7. Agile method I have a positive belief that increasing the success of ERP implementation, so before implementing ERP for an industry, it is necessary to assess the organization's readiness for the change process 1 6 Technologi cal I have a positive belief that one of the impacts of using an ERP system is to get various information as needed and to support decision making at the managerial level of the organization 1 7 System integration I have a positive belief that ERP is an integrated system and needs technological innovation for optimal use, so as to reduce duplication of work and increase organizational productivity.

8 ERP Systems
I like the use of ERP systems in completing work, because it will give effect to the work to be more efficient and effective

The agile method for ERP implementation.
The result of FGD processing by NVivo that rank the factors for each dimension that the processes dimension is 20%, people dimension is 28%, organizational dimension is 37%, and the technology dimension is 14 %. Thus, the organizational readiness is the most important. The results of FGD by NVivo application is shown in the Table 8. Based on the calculated processing follow the stages of weighting the TOPSIS method are as follows: 1. Normalized weighted matrix is 31710 2. Weighted normalized matrix by multiplying the normalized matrix with the weighting value min is 0,61 and max is 1,30 3. Matrix for positive is 0,47 and matrix for negative is 1,51 4. Value of each alternative solution with a positive ideal solution matrix is 2,76 and a negative ideal solution matrix is 5,08 5. Preferences value is 11,67 6. Ranking the value of each factors are weights sub-factors shown in the Table 9.
The summary result of data questionnaire processing by TOPSIS approach that rank the factors for each dimension that the processes dimension is 17%, people dimension is 15%, organizational dimension is 40%, and the technology dimension is 28 %. Thus, the organizational readiness is the most important also. The results weight analysis of TOPSIS approach is shown in the Table 9. From the comparison of the results of data processing it can be said that the organization dimension is the important that must be considered in readiness assessment before implementing ERP for the industry. While one dominant factor of the organizational dimension is the organization agile. So that, the agile factors can be considered. Thus, it can be said that the agile method is suitable in ERP implementation for the industry.

ERP readiness assessment framework in the industry.
The measurement the organization's readiness to make changes is wise, so that the goal of implementing ERP can be realized. This assessment considers the business process integration factors of the selected ERP system that the people and project teams involved, the technology tools used, and the organization's readiness to respond to change. So, four main components such as processes, people, organizations and technology can work using agile parameters, such as flexibility, responsiveness, speed, competency, accountability, and integration. The results of the assessment of the four components with collaborative agile parameters in order to increase agility in the industry. For this reason, the authors propose the ERP readiness assessment framework in the industry that can be shown in Figure 1.

Conclusion
The focus of integrated information systems is to provide solutions by aligning information technology and business processes to meet business needs. The readiness assessment is considered as a fundamental factor in order to increase agility in the industry before the organization's management decides to implement the ERP project. The agile method approach is to be considered as one of the suitable methods for assessing organizational readiness to support organizational activities with rapid adaptation and simplification of processes with focusing on quality and time. The agile factors activities such as flexibility, speed, responsiveness, competency, accountability, integration.