Enterprise Resource Planning Readiness Assessment for Determining the Maturity Level of ERP Implementation in the Industry in Indonesia

Enterprise Resource Planning Readiness Assessment for Determining the Maturity Level of ERP Implementation in the Industry in Indonesia

Volume 6, Issue 1, Page No 538-549, 2021

Author’s Name: Santo Fernandi Wijaya1,a), Harjanto Prabowo2, Ford Lumban Gaol3, Meyliana1

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1Information Systems Department, School of Information System, Bina Nusantara University, Jakarta, 11480, Indonesia
2Management Department, BINUS Business School Undergraduate Program, Bina Nusantara University, Jakarta, 11480, Indonesia
3Computer Science Department, BINUS Graduate Program, Bina Nusantara University, Jakarta, 11480, Indonesia

a)Author to whom correspondence should be addressed. E-mail: santofw@binus.ac.id

Adv. Sci. Technol. Eng. Syst. J. 6(1), 538-549 (2021); a  DOI: 10.25046/aj060159

Keywords: ERP readiness, Assessment, Maturity level, Textile industry

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The textile industry is one of the prioritized industries, because it contributes to the country’s foreign exchange, absorbs a large number of workers, and fulfills the need for national clothing. To increase work efficiency and productivity, the textile industry must use ERP. However, ERP implementation still has a relatively high failure rate. ERP readiness assessment is one of the main issues to achieve success in implementing ERP. Previous research is still limited to research about readiness for achieving success in ERP implementation. The research results have indicated that the maturity of the organization is a very significant dimension with a weight of 43.51%. By knowing the maturity level of the organization for ERP implementation can identify factors that become weaknesses for organizations to take corrective steps, so as to reduce the failure rate of ERP implementation in the industry. This research methodology uses a quantitative approach using R software to determine the principal component analysis and uses the Order Preference Technique with the Ideal Solution to weighted the identified factors. This research aims to determine organization readiness by developing the maturity level of ERP implementation in the industry in Indonesia which conducted a case study experiment in the textile industry in Indonesia. The result of this research is the development of an ERP readiness assessment to assess the maturity level of the organizations in ERP implementation.

Received: 16 November 2020, Accepted: 19 January 2021, Published Online: 28 January 2021

1. Introduction

The textile industry is one of the industries that is prioritized for development because it has a strategic role in the national economy, namely as a contributor to foreign exchange, absorbing large numbers of workers, and to meet national clothing needs. To increase work efficiency and productivity, the textile industry must use ERP. ERP can improve the performance of an organization, but until now the ERP implementation for the industry still has complexity with a high failure rate, so this causes implementation costs to be expensive. Referring to previous research, the ERP readiness assessment can assess the readiness of an organization in implementing ERP. ERP readiness assessment can be reviewed from the perspective of top management, project management, people, change management, technical requirements [1]. By identifying the weaknesses factors of the organization, management can develop ERP readiness assessment and make an evaluation to increase the organizational maturity level according to best practice [2-5]. The contribution of this research is the development of an ERP readiness measurement tool to increase the effectiveness of ERP implementation strategies for the industry, so that management can know the level of company readiness before making decisions for ERP implementation. Based on previous reseach, ERP implementations have a failure rate of 60% to 90%.  The problem solution is to identify critical success factors in ERP implementation with a focus on organization, technology adaptation, and business processes [6, 7]. Also, by assessing the readiness of the organization, it can be evaluated the weaknesses and strengths of the organization to adapt to change, so that the company can achieve organizational agility and ERP implementation success [8-10]. Previous research shows that there is still little research that discusses the maturity assessment of an organization before top management decides to implement ERP. The development of ERP readiness assessment is one of the main issues related to achieving success in implementing ERP. This research can help the top management of an organization or consultant party to assess the maturity level before deciding to implement ERP with a discussion of four perspectives such as processes, people, organizational, and technology which based on the development of the Leavitt Diamond Model [11]. The four components of Leavitt Diamond Model are people, tasks or processes, technology, and structure or organization prominent success factors for improving industry performance. This matter is considered for organizations to assess the readiness level of an organization in implementing ERP, so that top management of the organization can find out the factors that are the weaknesses and strengths of the organization, to be able to make improvements, so that the relatively expensive investment value can achieve successful ERP implementation for an industry. This research  explain identify the factors of ERP readiness assessment and the characteristics of the maturity level of the organization in ERP implementation. This is the novelty of this research which is the development of previous research to help the top management of the industry to find out the readiness of a company to adapt to a change in order to achieve the best practices and agile organizations..

2. Experimental procedure

     The experimental procedure of this research uses a study case in the textile industry in Indonesia by using a quantitative approach technique with R software to determine the Principal Component Analysis (PCA) [12]. The objective of PCA is to reduce the data dimension by eliminating the correlation of variables by transforming the original variable into a new uncorrelated variable so that the data can be interpreted. PCA is a non-parametric method that uses linear algebra to extract relevant information or patterns from a dataset with multivariate attributes. This research also use of Technique for Order Preference Technique with the Ideal Solution (TOPSIS) method to identify the weight factors. The TOPSIS method approach can be used as an ERP assessment tool to determine the weighting and ranking of factors for the main weight, the weight of sub-factors, and the final weight. TOPSIS is a decision-making method for ranking and prioritizing Multi Criteria Decision Making (MCDM). The stages of weighting the TOPSIS method are as follows [13]:

  1. Building a normalized weighted matrix using the following formula:
  2. 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:
  1. Determine the matrix for positive and negative ideal solutions. The positive ideal solution is denoted by A +, while the negative ideal solution is denoted by A-. With the following formula:
  1. Calculate the distance between the value of each alternative solution with a positive ideal solution matrix and a negative ideal solution matrix. By using the following formula:
  1. Calculating the preference value to an alternative ideal solution, with the following formula:
  1. Ranking the value of Ci +. The best solution is to have the shortest distance to the ideal solution and the farthest distance to the ideal negative solution.

      In processing the data of this study, the authors collected data from respondents using a questionnaire method. Then based on the results of the questionnaire, the authors validated the data using PCA. The results of data processing from PCA are to develop indicators as a basic concept in developing the ERP readiness assessment model. Based on the literature survey, the authors classify be indicators associated with these four dimensions. Based on the literature survey, the authors mapped the main variable (processes, people, organizational, and technology) with sub-variables and indicators related to the readiness of ERP implementation [14-18]. From the results of the literature survey, it was found that 24 sub-variables and 61 indicators  affect organizational readiness in ERP implementation. Then the authors define indicators and make questionnaire statements, then the authors distribute data to respondents using a questionnaire method. A list of sub-variables, defining indicators and questionnaire statements can be seen in Table 1.

Table 1: Sub-variables, Indicators, Definition and Questionnaire Statement

No Sub-variables No Indicators Code Definition Questionnaire statement
1 Business processes 1 Committed to change PR01 Business process change need the organization commitment to change to be standardized, understood and documented. The role of management’s commitment to standardized, understood, and documented changes to business processes
2 Business processes change PR02 Implementation success requires a change of business processes. Changes in business processes to achieve successful ERP implementation.
3 Business processes redesign PR03 Redesigning the business processes of an organization to best practice processes. It is necessary to redesign business processes based on best practice business processes.
2 Process standarized based on industry best practice 4 Integrated business process PR04 Integrate business process and operations for improving organization business. The integration of business processes and operations is necessary to improve the organization’s business.
5 Work processes standarized and documentation PR05 Standarization of work processes and documentation. Standardization of work processes and complete documentation are essential in ERP implementation.
3 Change Management 6 Cultural change management PR06 Cultural change management is a concern to successfully implement. Cultural change management must be done to ensure the change process runs well.
7 Open minded for changes PR07 Open minded for changes. An open mind from all parties involved in accepting the change process.
4 Skill and competency 8 Management’s skill and competency PE08 Management’s skills determines the strategy of utilizing ERP usage for business development. Management expertise in determining strategies for utilizing ERP for business development.
9 User’s skill and competency PE09 Skilled user to understand of process business of system used. User expertise in understanding the business processes of the system used.
10 IT staff’s skill and competency PE10 Specialized skills and competency of the IT team will increase the ERP implementation success. The expertise and special abilities of the IT team in improving the success of ERP implementation.
5 Project Manager 11 Adequate ERP project experience PE11 Project manager has adequate ERP project experience. The project manager has sufficient ERP project experience.
12 High level overview PE12 Have a thorough understanding of the knowledge, experience, ability, and coordinate all the processes of the ERP Project. Project Managers have a thorough understanding of the knowledge, experience, capabilities, and coordinate all processes in ERP implementation.
6 Training 13 Delivered to all parties PE13 Training is obliged to be delivered to all parties, including program, mechanism, material. Mandatory training is delivered to all parties involved, including programs, mechanisms and materials.
14 Users adaptation to new process PE14 Users can adapt to new processes from taking ERP implementation training. Users can adapt well to the new process from taking ERP implementation training.
15 Understand the overall concepts PE15 Training goal to understand the overall concepts of the ERP system. Training is useful for understanding the overall concept of an ERP system.
16 Transfer knowledge PE16 Transfer of knowledge to improve the quality of employees. Knowledge transfer for users to improve the quality of employees is very necessary.
7 Project team 17 Formed project team PE17 Formed project team accordingly to project the scope. The project team must be formed according to the scope of the ERP project.
18 Technical expertise PE18 Technical expertise, understanding for business processes, processes knowledge, and ERP project experience. There is a project team that has technical expertise, understanding of business processes, knowledge of ERP processes, and ERP project experience.
19 Involved Business Process Owner PE19 The involvement of a Business Process Owner in the project team to map and manage business processes according to ERP selected. The involvement of a Business Process Owner in the project team to map and manage business processes according to the ERP that will be implemented.
8 Human Resource Management 20 Available Human Resource PE20 Ensure the availability of adequate Human Resources to involved the ERP implementation process. Ensuring the availability of adequate human resources to carry out the ERP implementation process.
21 Development of competent human PE21 Development, utilization, and maintenance of competent human force to achieve goals of an organization. The process of developing, utilizing, and maintaining competent human resources to achieve organizational goals in ERP project implementation.
9 Clear roles and responsibi lites 22 Clear roles of project PE22 Clear roles of project stakeholders should be clearly defined, fully documented and understood. The clear roles of project stakeholders must be clearly defined, documented and fully understood by all teams involved.
23 Clear responsibilities of project PE23 Determination of the responsibilities of the tim involved in ERP implementation. It is very important to determine the responsibility of the team involved in ERP implementation.

No Sub-variables No Indicators Code Definition Questionnaire statement
10 Employee /staf/user involvement 24 Employee  commitment PE24 Commitment of employees to implement ERP projects. Employee commitment in implementing ERP projects is very necessary.
25 Employee  involvement PE25 Employees are actively involved in the process of ERP implementation stages. Employees are actively involved in participating in ERP implementation activities.
11 Shared values 26 Project champion OG26 Project champion is a reliable person and trusted to regarding implementation. Project champions are needed in ERP implementation, because project champions are people who can be relied on and trusted in ERP implementation activities.
OG27 Project champion can ensure implementation processes run or the possibility of project success. The project champion is needed to ensure the implementation process runs well and also determines the success of the ERP project.
OG28 Project champion in an ERP implementation is fundamental in implementation. Project champion is fundamental in ERP implementation.
27 Shared beliefs OG29 Belief to benefits of using ERP in organizations. All parties involved must have confidence in the benefits of using ERP in the organization.
28 Cross functional support OG30 Get support all function of organization. Support from all organizational functions in achieving successful ERP implementation is needed.
OG31 Cross department cooperation. Cross-departmental collaboration is essential in achieving a successful ERP implementation.
12 Project Management 29 Measurement of performance specific, measurable, achievable, relevant, time bound OG32 Performance measurement of ERP projects specifically in the planning, implementation, and post-ERP implementation processes. Specific ERP project performance measurement in the planning, implementation, and post-ERP implementation processes is essential.
OG33 Performance measurement of ERP projects that the measurable results of each stage of implementation. Measurable ERP project performance measurement at each stage of ERP implementation is needed
OG34 Performance measurement of ERP projects that the ERP implementation is achieved. ERP project performance measurement that pays close attention to the target of achieving ERP implementation must be considered.
        OG35 Performance measurement of ERP projects that the relevant results according to the company’s vision and mission. ERP project performance measurement must pay attention to the results that are relevant to the company’s vision and mission.
        OG36 Performance measurement of ERP projects that the performance of the ERP project in accordance with a predetermined target time. ERP project performance measurement must be in accordance with a predetermined time schedule.
    30 Monitoring of performance OG37 Focused on customer need. ERP project performance measurement results should focus on customer needs.
      OG38 Controlling for implementation schedule. The performance control process is indispensable in ERP implementation.
    31 IT Governance OG39 Focus on IT governance with concerned to information quality. IT governance must pay attention to the quality of information generated by ERP.
13 Knowledge Management 32 Knowledge sharing process OG40 Knowledge sharing process can greatly improve employees’ ability to learn and manage knowledge. The process of knowledge sharing is needed in an effort to improve employee learning skills and manage their knowledge.
33 Data and information standarized OG41 Ensure information standarized in all business operations. Data and information standarizedon all business operations supports the use of ERP.
14 Organizatio nal structure 34 Centralization OG42 Activities of an organisation, planning and decision-making are controlled by the top management and project manager. Planning and decision-making activities that are controlled by top management and project managers are required in ERP projects.
35 Specialization OG43 Specialization is a business strategy that focuses on specialized production for increasing productivity with ERP use. A business strategy that focuses on specialized production is needed to increase productivity with the use of ERP.
36 Formalization OG44 Formalization as a process to define procedures, standardization processes, responsibilities, and completely documented. Organizational formalization is needed in ERP implementation as a process in determining procedures, standardizing work processes, and fully documented responsibilities.
37 Size of organization OG45 The success of  ERP projects may be impacted by organization size. The size of the organization affects the success of an ERP project.
38 CIO position OG46 CIO’s role is to determine the alignment of business and technology, ensure the availability, accuracy, accuracy and security of information as needed to achieve the organizational goals. The role of the Chief Information Officer (CIO) is needed to determine the alignment of business and technology, ensuring the availability, accuracy, accuracy, and security of information according to management needs to achieve organizational goals.
  39 Top management commitment OG47 Involved in every step of ERP project, monitor the progress ERP. Top management must be involved in every process and monitor the progress of the ERP project.
  OG48 Focusing on top management’s commitment and willingness to provide sufficient resources. Top management commitment is needed to provide adequate resources and achieve a successful ERP implementation.
No Sub-variables No Indicators Code Definition Questionnaire statement
15 Organizati onal style 40 Communication OG49 Communicate all activities in the ERP implementation process to all parties involved. Communicating all activities in the ERP implementation process to all parties involved is very important.
OG50 Sign off as proof of the communication and agreement on project work. Sign off as proof of communication and agreement on ERP project work must be approved by the parties involved.
41 Organizational culture OG51 Organizational culture determines the right way to attitude and make changes, including with regard to ERP implementation. Organizational culture determines the right way to behave and make changes in ERP implementation.
  42 Vision and mission OG52 The clear of vision and mission as a guide ERP implementation. A clear organizational vision and mission guides the implementation of ERP implementation.
  OG53 A clear vision and mission must be revealed and communicated  into an important part that will support the ERP project. A clear organizational vision and mission must be revealed and communicated to all parties involved to support the implementation of the ERP project.
16 Organizati onal strategy 43 Goals and objectives OG54 Identification of measurable goals, the formation of the project organization, and the motivation of the project team. The process of identifying measurable goals, establishing a project organization, and the motivation of the ERP project team are important factors in supporting ERP implementation.
OG55 Define and must be communicated effectively among stakeholders involved. Project objectives and objectivity must be defined and communicated effectively to the stakeholders involved.
44 Project planning (scope, time, budget, risk, other resources) OG56 Determine the scope of the ERP project. Determination of a clear ERP project scope will determine the success of ERP implementation.
OG57 Confirming the ERP project for determine target of go live time. All ERP project activities must be confirmed with all parties involved in order to determine the target time to go live.
OG58 Budget usage needs to be controlled rigorously throughout the ERP implementation. Budget usage needs to be strictly controlled during ERP implementation.
OG59 Project planning implementation can reduce the risk for the failure. The implementation of project planning can reduce the risk of failure in ERP implementation.
OG60 Project planning implementation requires the availability of complete resources. ERP implementation project planning must have complete resource availability.
17 System rollout 45 Rollout system TH61 Rollout system is a structured set of processes to anticipate events that cause ERP implementation setbacks. A system rollout function to anticipate things that cause ERP implementation setbacks must be available.
  configuration 46 Configuration system TH62 A configuration refers to the hardware and software that greatly affect ERP implementation success. Correct configuration of hardware and software affects the success of ERP implementation.
18 System integration 47 IT infrastructure TH63 Determine the software, hardware, and network infrastructure that will be needed for the ERP system. Determining the correct software, hardware and network infrastructure is needed in ERP implementation.
TH64 Adequate IT infrastructure, hardware and networking for ERP implementation. It is necessary to conduct an assessment of the adequacy of IT infrastructure, hardware and networks before implementing ERP.
48 Processes improvement TH65 Process improvements need to be identified before the implementation of ERP. Identification of process improvements must be done prior to ERP implementation.
TH66 Information usable that provides benefits that support decision making related to ERP projects. Useful information is needed to support decision making in ERP projects.
49 Data management TH67 Data comprehensive that supports decision making related to ERP projects. Complete data comprehensively supports decision making in ERP projects.
TH68 Data availability as needed to support decision making related to ERP projects. The availability of data that is suitable for management needs for decision making in ERP projects is needed.
19 IT structure and legacy systems 50 IT structure TH69 IT team structure to coordinate ERP project activities from planning to post-go live. Good IT team structure to coordinate ERP project activities from planning to post-go live.
51 Legacy systems TH70 Good integration with legacy systems. Integration with old systems in ERP implementation must be done well.
20 Technology selection & adaptation (Technolo gical readiness) 52 Technology selection TH71 The company’s readiness in selection, providing, and implementing technology that supports business strategies. An assessment of the company’s readiness in selecting, providing, and implementing technology that supports business strategies must be carried out.
53 Technology adaptation TH72 Adaptation of technology used to support optimal ERP implementation strategy. Adaptation of the technology used to support the ERP implementation strategy is needed.
21 System acceptance and usage 54 System acceptance TH73 Acceptance of users to use ERP in completing work will increase the work more effective and efficient. Acceptance of users to use ERP in completing work and improving a more effective way of working is very important
55 System usage TH74 The use of information technology can improve the performance of the organization. The optimal use of information technology can improve overall organizational performance.
22 Trouble shooting 56 Helpdesk system TH75 The available of a helap system to help users in providing  fast response in troubleshooting related to ERP use. The availability of a helpdesk system will help users quickly solve problems related to the use of ERP.
57 Service to users TH76 The available of an IT team to serve users in providing  troubleshooting related to ERP use. The availability of an IT team that provides services for users and provides solutions to problems related to the use of ERP is very much needed.
No Sub-variables No Indicators Code Definition Questionnaire statement
23 External consultant / expertise 58 Functional consultant TH77 Analyzes running business processes and provides directions for following ERP business processes that can be implemented. Consultants can analyze running business processes and provide directions for following ERP business processes so that they can be implemented properly.
59 Technical consultant TH78 Consultant expertise in providing directions and solutions for technical matters related to ERP implementation. Consultants can provide direction and solutions for technical matters related to ERP implementation.
24 Vendor relationship and support 60 Vendor engagement TH79 Relationships and angagement with vendors will speed up problem solving related to the ERP implementation process. Relationships and agreements with vendors can speed up problem solving related to the ERP implementation process.
61 Supply Chain Management TH80 Network of interconnected department for fulfilling the material required by the other departments or by the customers. Inter-departmental networks that are interconnected to meet material requirements for other departments or for customers are very necessary in ERP.

      The characteristic of CMMI is initial, defined, managed, measured, and optimized [19]. Initial: Unpredicable, uncontrolled, no-automation. Defined: Some shared decision-making. Managed: Collaboration, analyze trend, and portfolios. Measured: Central automated process, standardized across the organization. Optimized: Focused on continuous improvement, stability provides a platform for agility and innovation.  The related between characteristic of maturity level with readiness of ERP readiness assessment module, which can be seen in Figure 1.

Level 1    Initial Level 2    Defined Level 3    Managed Level 4    Measured Level 5    Optimized
PROCESSES READINESS
PEOPLE READINESS
ORGANIZATIONAL READINESS
TECHNOLOY READINESS

Figure 1: ERP Readiness Assessment model

      Based on these main variables (processes readiness, people readiness, organizational readiness, and technology readiness), it is derived into 24 sub-variables and 61 indicators. The grouping of processes readiness variables is derived into 3 sub-variables and 7 indicators  can be seen in Figure 2.

Var Sub-variable Indicators
Processes readiness Business processes Committed to change
Business processes change
Business processes redesign
Process standarization based on industry best practice Integrated business process
Work processes standarize & documentation
Change Management Cultural change management
Open minded for changes

Figure 2: Processes readiness of ERP Readiness Assessment

      The grouping of people readiness variables is derived into 7 sub-variables and 18 indicators can be seen in Figure 3.

The grouping of organizational readiness variables is derived into 9 sub-variables and 25 indicators can be seen in Figure 4.

Var   Sub-variable Indicators
People readiness   Skill and competency Management’s skill & competency
  User’s skill & competency
  IT staff’s skill & competency
  Project Manager Adequate ERP project experience
  High level overview
  Training Delivered to all parties
  Users adaptation to new process
  Understand the overall concepts
  Transfer knowledge
  Project team Formed project team
  Technical expertise
  Involved Business Process Owner
  Human Resource Management Available Human Resource
  Development of competent human
  Clear roles & responsibilities Clear roles of project
  Clear responsibilities of project
  Employee/ staf /user involvement Employee  commitment
  Employee  involvement

Figure 3: People readiness of ERP Readiness Assessment

Var Sub-variable Indicators
Organizational readiness Shared values Project champion
Shared beliefs
Cross functional support
Project Management Measurement of performance specific, measurable, achievable, relevant, time bound
Monitoring of performance
IT Governance
Knowledge Management Knowledge sharing process
Data & information standarization
Organizational structure Centralization
Specialization
Formalization
Size of organization
CIO position
Organizational style Top management commitment
Communication
Organizational culture
Vision and mission
Organizational strategy Goals and objectives
Project planning (scope, time, budget, risk, other resources)

Figure 4: Organizational readiness of ERP Readiness Assessment

      The grouping of technology readiness variables is derived into 8 sub-variables and 17 indicators. The grouping of technology readiness for each sub-variables and indicator can be seen in Figure 5.

Var Sub-variable Indicators
Technology readiness System rollout & configuration Rollout system
Configuration system
System integration IT infrastructure
Processes improvement
Data management
IT structure & legacy systems IT structure
Legacy systems
Technology selection & adaptation (technological readiness) Technology selection
Technology adaptation
System acceptance & usage System acceptance
System usage
Trouble shooting Helpdesk system
Service to users
External consultant/ expertise Functional consultant
Technical consultant
Vendor relationship & support Vendor engagement
Supply chain management

Figure 5: Technology readiness of ERP Readiness Assessment

3. Result and discussion

3.1.  Data processing of the questionnaires

      As a result of distributing questionnaires to respondents, Authors made a characteristics profile of respondents which can be seen in Table 2.

Table 2: Characteristics profile of respondents

Respondent profile Frequency %
Gender Male 96 73%
Female 35 27%
    131 100%
Age 20-30 years 38 29%
31-40 years 34 26%
41-50 years 36 27%
> 51 years 23 18%
Level of education Strata-1 (bachelor) 90 69%
Strata-2 (undergraduate) 36 27%
Strata-3 (doctoral) 5 4%
Work experience 1-2 years 34 26%
2-3 years 6 5%
3-4 years 16 12%
> 4 years 75 57%
Educational background Information technology 68 52%
Finance/Accounting 43 33%
Marketing 5 4%
Production 3 2%
Others 12 9%
Level Staff 57 44%
Manager 60 46%
Director 14 11%
Industry type Textile industry 67 51%
Garment industry 39 30%
Consultant 25 19%

      The authors grouping indicators the data collection to organizational readiness in ERP implementation, by determining the following components to Gender: The authors included gender components because it can influence in emotions in decision making in the data collection according the character of the respondents. Age: The authors included age components because it can influence decision making in the data collection according to work experience from respondents.  Work experience: Authors included work experience components because it can influence maturity in decision making in the data collection according the work experience using ERP from respondents. Educational background: The authors  included educational background components in the data collection because it can affect the level of maturity in decision making. Position: Authors included a position components because it can influences the maturity level in decision making. Industry type: Authors  included industry type components in data collection because it can be comparison of the data processing result. The authors  forward to test of 61 indicators using the multivariate Principal Component Analysis (PCA) statistical approach using R software, which meets the following requirement, namely the p-value must be less than 0.05, and the Measure of Sampling Adequacy(MSA) value must be greater than 0.5. The results of PCA data processing using software R show that Kaiser-Meyer Olkin (KMO) = 0.866, where all indicators have ”KMO > 0.5”, so it can be interpreted that the KMO value has requirement. The results of data processing from the PCA test show that 61 indicators from into 24 Release Candidate (RC) with the sum of the squared loadings (SS Loadings) achieve contributes 83% cumulative variable. The SS loading value is the result of automatic calculation from the R software. Based on RC results of PCA data processing using R software by calculation for more than one of eigen value (SS Loading > 1) achieved at a cumulative variable 83% with RC is 24, this is the optimum value calculated achieve cumulative proportion 100%. The release Candidate result can be seen in Table 3.

Table 3: Release Candidate results

No RC  SS Loading Proportion variable Cumulative variable Proportion  Explained Cumulative Proportion
1 RC1  5.73 7% 7% 10,00% 10%
2 RC21  4.68 6% 13% 7,00% 17%
3 RC4  4.62 6% 19% 7,00% 24%
4 RC2  4.06 5% 24% 6,00% 30%
5 RC24  3.53 4% 28% 5,00% 35%
6 RC13  3.43 4% 32% 5,00% 40%
7 RC22  3.37 4% 36% 5,00% 45%
8 RC3  2.86 4% 40% 4,00% 49%
9 RC7  2.85 4% 44% 4,00% 53%
10 RC19  2.82 4% 48% 4,00% 57%
11 RC17  2.66 3% 51% 4,00% 61%
12 RC15  2.63 3% 54% 4,00% 65%
13 RC5  2.46 3% 57% 4,00% 69%
14 RC9  2.45 3% 60% 4,00% 73%
15 RC10  2.30 3% 63% 3,00% 76%
16 RC16  2.21 3% 66% 3,00% 79%
17 RC8  2.16 3% 69% 3,00% 82%
18 RC12  2.11 3% 72% 3,00% 85%
19 RC6  1.96 2% 74% 3,00% 88%
20 RC20  1.86 2% 76% 3,00% 91%
21 RC23  1.77 2% 78% 3,00% 94%
22 RC11  1.54 2% 80% 2,00% 96%
23 RC18  1.52 2% 82% 2,00% 98%
24 RC14  1.05 1% 83% 2,00% 100%
SS Loading is the sum of the squared loadings
RC is Release Candidate

      Based on the results of R software data processing for 24RC, the authors analyze for finding the highest value of each indicator, then the authors classify according to each of RC with create a new group for 24RC.  The PCA result of data processing using R software can be seen in Table 4.

Table 4: Principal Component Analysis

RC  Indicator  RC1  RC2  RC3  RC4  RC5  RC6  RC7  RC8
RC1  OG26  0.80  0.10  0.06  0.17  0.15  0.05  0.12  0.14
 OG27  0.82  0.05  0.11  0.13  0.09  0.05  0.11  0.04
 OG28  0.72  0.03  0.06  0.20  -0.10  0.15  0.06  -0.11
 OG43  0.46  0.12  0.15  0.09  -0.05  -0.03  0.17  0.17
 PE22  0.41  0.39  0.04  0.18  0.13  0.05  0.06  0.10
 OG38  0.36  0.23  -0.02  0.23  -0.03  0.17  0.19  0.16
 TH61  0.34  0.07  0.34  0.23  0.03  0.04  0.03  0.03
RC2  PR06  0.11  0.4  -0.13  0.12  0.40  -0.11  0.03  0.21
 OG29  0.09  0.4  0.12  0.17  -0.01  0.03  0.03  0.05
 OG30  -0.02  0.79  0.14  0.10  0.05  0.16  0.01  0.12
 OG31  0.15  0.53  0.12  0.11  0.37  -0.14  0.23  0.08
 OG32  0.34  0.43  0.09  0.18  0.14  0.2  0.27  -0.01
 OG33  0.12  0.46  0.18  0.09  0.10  0.18  0.18  0.03
 OG34  0.29  0.45  0.15  0.30  0.04  0.16  0.07  0.03
 OG36  0.20  0.47  0.22  0.11  0.07  0.13  0.14  -0.19
RC3  TH62  0.09  0.16  0.78  0.14  0.08  0.07  0.11  0.10
 TH63  0.13  0.10  0.68  0.25  0.11  0.20  0.23  0.06
RC4  TH74  -0.02  0.09  0.3  0.5  -0.01  0.10  0.34  0.22
 TH77  0.14  0.08  0.07  0.81  0.07  -0.08  0.11  -0.02
 TH78  0.22  0.08  0.16  0.82  0.12  0.03  0.08  0.05
 TH79  0.20  0.23  0.23  0.62  -0.03  0.28  -0.01  0.07
RC5  PR01  0.03  0.11  0.18  0.11  0.74  0.08  0.02  0.18
 PR04  0.36  0.16  0.02  0.02  0.49  0.07  0.09  0.05
 PR05  0.15  0.17  -0.22  0.34  0.36  0.16  0.32  0.09
RC6  OG58  0.13  0.15  0.16  0.05  0.05  0.81     –  0.01
RC7  TH75  0.25  0.11  0.23  0.12  0.06  0.07  0.69  0.05
 TH76  0.17  0.04  0.22  0.20     –  -0.16  0.61  0.14
RC8  OG41  0.07  0.25  0.01  0.17  0.16  0.08  0.37  0.44
 OG42  0.04     –  0.12  0.09  0.11  0.04  0.21  0.56
 OG48  0.17  0.17  0.16  0.06  0.23  -0.01  0.03  0.7
RC  Indicator  RC9  RC10  RC11  RC12  RC13  RC14  RC15  RC16
RC9  PR07  0.54  0.14  0.09  0.21  0.28  -0.10  -0.01  0.09
 PE11  0.68  -0.01  0.05  0.04  0.14  0.06  0.08  0.02
 PE12  0.5  0.19  0.11  0.07  0.02  0.17  0.19  0.27
RC10  PE20  0.05  0.51  0.09  -0.06  -0.03  0.19  0.13  0.19
 PE21  0.11  0.62  0.11  0.16  0.21     –  0.14  0.12
 PE25  0.06  0.45  0.01  0.09  -0.03  0.09  0.03  0.16
RC11  PE08  0.09  0.08  0.78  0.08  0.16  0.13  0.07  0.10
RC12  PR02  0.08  0.12  0.09  0.78  0.15  0.04  0.18     –
 PR03  0.17  -0.22  -0.10  0.47  0.18  0.1  0.03  0.14
RC13  OG49  0.08  0.23  0.17  -0.08  0.54  -0.01  0.26  0.10
 OG57  0.24  0.05  0.2     –  0.64  -0.11  0.07  0.07
 OG60  0.19  0.17  0.06  0.1  0.39  0.02  0.17  -0.28
 TH67  -0.18  0.04  0.2  0.08  0.47  0.16  0.25  0.10
 TH68  0.08  0.11  -0.03  0.16  0.57  0.22  -0.10  0.09
 TH73  0.02  0.13  0.06  0.1  0.45  0.1  0.31  0.06
RC14  PE19  0.22  0.1  0.01  -0.02  0.15  0.51  -0.04  0.09
RC15  OG44  0.09  0.05  0.06  -0.09  0.03  0.08  0.55  0.16
 OG45  0.15  0.19  0.1  0.24  0.24  -0.15  0.35  0.10
 OG51  0.11     –  0.07  -0.02  0.13  -0.07  0.69  -0.07
RC16  PE23  0.17  0.21  0.1  0.2  -0.04  0.21  0.03  0.46
 PE24  0.01  0.04  0.14     –  0.10  -0.01  0.05  0.81
RC  Indicator  RC17  RC18  RC19  RC20  RC21  RC22  RC23  RC24
RC17  OG46  0.65  -0.10  0.16  0.15  0.21  0.09  0.11  0.12
   OG47  0.79  0.15  0.04  -0.04  0.12  0.13  -0.01  0.09
RC18  TH69  0.14  0.54  0.22  0.10  0.16  0.10  0.13  0.15
   TH72  0.04  0.47  0.36  0.06  0.21  0.12  -0.02  0.18
RC19  OG40  0.17  0.08  0.53  0.18  0.20  0.21  0.10  0.24
   OG56  0.06  0.21  0.39  0.10  0.07  0.25  0.08  0.37
   TH70  0.21  0.06  0.49  0.18  0.19  0.15  0.24  -0.08
   TH71  0.03  0.09  0.75  0.05  0.17  0.06  0.05  0.17
RC20  PE15  0.11  0.10  0.16  0.61  0.11  0.14  0.09  0.05
   PE13  0.02  0.09  0.26  0.43  0.13  0.10  0.30  0.24
RC21  OG35  0.05  0.01  0.27  0.22  0.45  0.17  0.15  0.15
   OG37  0.04  0.02  0.10  0.40  0.49  0.25  0.13  0.03
   OG52  0.17  0.08  0.16     –  0.77  0.12  0.08  0.04
   OG53  0.08  0.10  0.12  0.06  0.80  0.11  -0.01  0.17
   OG54  0.03  -0.17  0.01     –  0.47  0.17  0.19  0.22
   OG55  0.18  -0.07  0.22  0.09  0.37  0.11  0.11  0.08
RC22  PE09  0.13  -0.07  0.23  0.05  0.01  0.60  0.09  0.21
   PE16  -0.08  -0.11  0.22  0.36  -0.01  0.43  0.18  0.27
   PE17  0.18  0.12  0.04  0.09  0.28  0.67  0.14  0.05
   PE18  0.05  0.14  0.13  0.10  0.25  0.54  -0.04  0.08
   OG50  0.20     –  -0.02  0.10  0.25  0.36  -0.01  0.18
   TH64  0.16  0.25  0.15  -0.13  0.25  0.40  0.22  0.01
RC23  PE10  0.18  0.24  0.10  0.16  0.15  0.21  0.49  -0.03
   TH65  0.04     –  0.16  0.12  0.12  0.15  0.66  0.16
RC24  PE14  -0.03  -0.05  0.03  0.33  0.19  0.28  0.19  0.36
   OG39  0.13  0.03  0.25  -0.02  0.41  0.01  0.06  0.49
   OG59  0.17  0.01  0.11  0.08  0.08  0.19  0.14  0.66
   TH66  0.12  0.12  0.10  0.06  0.19  0.08  -0.03  0.52
   TH80  0.08  0.16  0.26  0.05  0.24  0.06  0.06  0.54

3.2. ERP readiness assessment factors

      Based on the results of PCA data processing using R software, the authors identify a new name for the sub-variable of each RC can be seen in Table 5. Then the authors continue to analysis with the weighting of 61 indicators using TOPSIS method where the name of the grouping for 24 sub-variables is based on the highest score for the preference score. The results of the TOPSIS processing for 10 the readiness factors that affect the success of ERP implementation are as follows: cross functional support (9.87%), project champion (9.14%), communication (7.82%),  vision and mission (6.98%), transfer knowledge (6.97%), process improvement (5.98%), project planning (5.19%), vendor engagement (5.13%), commited to change (4.12%), and open minded for changes (4.05%). The results of the weight of ERP readiness assessment can be seen in Table 5.

Table 5: The weight of ERP readiness assessment

RC No Indica-tors Sub-variables Main weights Final weights  Weights factors  Prefe rences
RC01 1 OG28 Project champion 9.14%  15.75  1.44  0.77
2 OG27  15.43  1.41  0.75
3 PE22  14.11  1.29  0.68
4 OG26    14,00  1.28  0.68
5 OG43  13.79  1.26  0.67
6 TH61  13.46  1.23  0.66
7 OG38  13.46  1.23  0.65
RC02 8 OG30 Cross functional support 9.87%  13.98  1.38  0.73
9 OG29  13.78  1.36  0.72
10 OG36  13.48  1.33  0.71
11 OG33  13.07  1.29  0.68
12 OG31  12.56  1.24  0.66
13 PR06  11.65  1.15  0.61
14 OG32  11.04  1.09  0.58
15 OG34  10.44  1.03  0.55
RC03 16 TH62 Configuration system 2.42%  52.89  1.28  0.68
17 TH63  47.11  1.14  0.60
RC04 18 TH79 Vendor engagement 5.13%  28.07  1.44  0.77
19 TH77  25.34  1.30  0.69
20 TH78  25.15  1.29  0.69
21 TH74  21.44  1.10  0.59
RC05 22 PR01 Committed to change 4.12%  35.19  1.45  0.77
23 PR04  33.98  1.40  0.74
24 PR05  30.83  1.27  0.67
RC06 25 OG58 Project planning (budget) 1.24%  100,00  1.24  0.66
RC07 26 TH75 Helpdesk system 2.43%  53.09  1.29  0.69
27 TH76  46.91  1.14  0.61
RC08 28 OG48 Data & information standarization 3.59%  35.1  1.26  0.67
29 OG41  32.87  1.18  0.63
30 OG42  32.03  1.15  0.61
RC09 31 PR07 Open minded for changes 4.05%  35.31  1.43  0.76
32 PE11  33.58  1.36  0.72
33 PE12  31.11  1.26  0.67
RC10 34 PE25 Employee  involvement 3.38%  33.73  1.14  0.60
35 PE20  33.43  1.13  0.60
36 PE21  32.84  1.11  0.59
RC11 37 PE08 Management’s skill & competency 1.27%  100,00  1.27  0.68
RC No Indica-tors Sub-variables Main weights Final weights Weights factors Prefe rences
RC12 38 PR02 Business processes change 2.7% 50.37 1.36 0.72
39 PR03 49.63 1.34 0.71
RC13 40 OG49 Communica tion 7.82% 19.05 1.49 0.79
41 OG57 17.14 1.34 0.71
42 TH73 16.62 1.30 0.69
43 OG60 16.37 1.28 0.68
44 TH67 15.47 1.21 0.64
45 TH68 15.35 1.20 0.64
RC14 46 PE19 Involved Business Process Owner 1.21% 100,00 1.21 0.64
RC15 47 OG45 Size of organization 3.7% 34.32 1.27 0.68
48 OG51 32.97 1.22 0.65
49 OG44 32.7 1.21 0.64
RC16 50 PE23 Clear responsibilities of project 2.36% 48.73 1.15 0.61
51 PE24 51.27 1.21 0.64
RC17 52 OG47 Top management commitment 2.58% 50.78 1.31 0.70
53 OG46 49.22 1.27 0.67
RC18 54 TH69 IT structure 2.58% 50,00 1.29 0.69
55 TH72 50,00 1.29 0.68
RC19 56 OG56 Project planning (scope) 5.19% 27.17 1.41 0.75
57 TH70 26.20 1.36 0.72
58 TH71 25.24 1.31 0.70
59 OG40 21.39 1.11 0.59
RC20 60 PE13 Delivered to all parties 2.66% 54.51 1.45 0.77
61 PE15 45.49 1.21 0.64
RC21 62 OG52 Vision and mission 6.98% 18.62 1.30 0.69
63 OG53 18.05 1.26 0.67
64 OG37 17.77 1.24 0.66
65 OG35 15.33 1.07 0.57
66 OG55 15.19 1.06 0.56
67 OG54 15.04 1.05 0.56
RC22 68 PE16 Transfer knowledge 6.97% 19.80 1.38 0.73
69 PE18 16.93 1.18 0.63
70 TH64 16.50 1.15 0.61
71 PE09 15.78 1.10 0.58
72 OG50 15.49 1.08 0.58
73 PE17 15.49 1.08 0.57
RC23 74 PE10 IT staff’s skill & competency 2.63% 53.23 1.40 0.74
75 TH65 46.77 1.23 0.65
RC24 76 TH66 Processes improvement 5.98% 22.07 1.32 0.70
77 OG59 21.91 1.31 0.69
78 TH80 19.40 1.16 0.62
79 PE14 18.90 1.13 0.60
80 OG39 17.73 1.06 0.57

      The results of data processing using TOPSIS, found that organizational variables have the main weight of 43.51%, variable technology has the main weight of 25.03%, variable people have the main weight of 22.06%, and variable processes have the main weight of 9.40%. Thus, the organizational variable is a very dominant variable that determines the level of readiness in implementing ERP for the textile industry in Indonesia. The main weight of variables can be seen in the Table 6.

Table 6: Main weight of variables

No Variable Main Weight
1 Organizational  43.51
2 Technology  25.03
3 People  22.06
4 Processes  9.40
     100.00

      Meanwhile, the teen sub-variables that have a significant main weight can be seen in the Table 7.

Table 7: Weight of sub-variables

No Sub-variables Main weight
1 Cross functional support 9.87
2 Project champion 9.14
3 Communication 7.82
4 Vision and mission 6.98
5 Transfer knowledge 6.97
6 Processes improvement 5.98
7 Project planning (scope) 5.19
8 Vendor engagement 5.13
9 Committed to change 4.12
10 Open minded for changes 4.05

3.3 Measuring the level of organizational maturity

      Based on the weighting of 24 indicators which are the results of data processing using TOPSIS, the authors make a list of questions as a basis for designing an ERP readiness assessment module. The list of assessment questions is in the form of a rubric assessment with the maturity level of the Capability Maturity Model Integration (CMMI) model with being considered the characteristic of initial, defined, managed, measured, and optimized with the readiness of process, people, organizational and technology. The list of Rubric Maturity Assessments can be seen in Table 8.

      This rubric assessment will be a reference for the top management or the consultant to test each department involved to get good feedback before implementing ERP for the industry.

Table 8: Rubric Maturity Assessment

No Sub-variables MATURITY LEVEL
INITIAL DEFINED MANAGED MEASURED OPTIMIZED
1 Project champion The function of a Project Champion in project ERP has not been defined The function of a Project Champion in project ERP has been defined The function of a Project Champion in project ERP have been standardized in SOP The function of a Project Champion in project ERP has been socialized The function of a Project Champion in project ERP has been evaluated for improvement
2 Cross functional support Support from organizational functions in ERP implementation is still informal Support from organizational functions in implementing ERP has been standardized in SOPs Support from organizational functions in implementing ERP has been disseminated Support from organizational functions in implementing ERP has been integrated across departments Support from organizational functions in implementing ERP has been evaluated for improvement
3 Configuration system The system hardware and software configurations affecting the success of ERP implementation have not been identified The system hardware and software configurations that affect the successful implementation of ERP have been identified The configuration of the hardware and software systems that affect the success of ERP implementation has been standardized in the SOP The configuration of hardware and software systems that affect the success of ERP implementation has been socialized The hardware and software system configurations that affect the success of ERP implementation have been evaluated for improvement
4 Vendor engagement Relationships and agreements with vendors that can speed up problem solving related to the ERP implementation process have not yet been identified Relationships and agreements with vendors that can speed up problem solving related to the ERP implementation process have been identified Relationships and agreements with vendors that can speed up problem solving related to the ERP implementation process have been standardized in the SOP Relationships and agreements with vendors that can speed up problem solving related to the ERP implementation process have been integrated with the customer Relationships and agreements with vendors that can speed up problem solving related to the ERP implementation process have been evaluated for improvement
5 Committed to change Management’s commitment to change business processes is still informal. Management’s commitment to changing business processes has been standardized in the SOP. Management’s commitment to changing business processes has been socialized Management’s commitment to change business processes has been synchronized with business strategy Management’s commitment to changing business processes has been evaluated for improvement
6 Project planning (budget) The budget usage that must be strictly controlled during ERP implementation has not been defined The use of budgets that must be strictly controlled during ERP implementation has been determined The use of budgets that must be strictly controlled during ERP implementation has been standardized in the SOP The use of budgets that must be strictly controlled during ERP implementation has been socialized The use of budgets that must be strictly controlled during ERP implementation has been evaluated for improvement
7 Helpdesk system The availability of a helpdesk system can help users quickly solve problems related to the use of ERP that have not been identified The availability of a helpdesk system can help users quickly solve problems related to the use of ERP that have been identified The availability of a helpdesk system can help users quickly solve problems related to the use of ERP that have standardized in the SOP The availability of a helpdesk system can help users quickly solve problems related to the use of ERP that have been socialized The availability of a helpdesk system can help users quickly solve problems related to the use of ERP that have evaluated for improvement
8 Data & information standarization Standardization of data and information on all business operations has not been identified Standardization of data and information on all business operations has been identified Standardization of data and information on all business operations has standardized in the SOP Standardization of data and information on all business operations has been socialized Standardization of data and information on all business operations has evaluated for improvement
9 Open minded for changes Not all parties involved have an open mind in accepting the change process All parties involved have an open mind in accepting the change process has been identified All parties involved have an open mind in accepting the change process has been standardized in the SOP All parties involved have an open mind in accepting the change process has been socialized All parties involved have an open mind in accepting the change process  has evaluated for improvement
10 Employee  involvement Being actively involved in ERP implementation has not been identified Being actively involved in ERP implementation has been identified Being actively involved in ERP implementation has been standardized in the SOP Being actively involved in ERP implementation has been socialized Being actively involved in ERP implementation has evaluated for improvement

No Sub-variables MATURITY LEVEL
INITIAL DEFINED MANAGED MEASURED OPTIMIZED
11 Management’s skill & competency Management does not yet have expertise in determining strategies for utilizing ERP for business development Management already has expertise in determining ERP utilization strategies for business development Management already has expertise in determining ERP utilization strategies for business development and has been standardized in SOPs Management already has expertise in determining ERP utilization strategies for business development and has been socialized Management already has expertise in determining ERP utilization strategies for business development and has evaluated for improvement
12 Business processes change Changes in business processes are still informal. Changes in business processes has been standardized in SOPs Changes in business processes has been socialized Changes in business processes has been integrated Changes in business processes has evaluated for improvement
13 Communica tion The objectives and objectivity of the project are communicated effectively to the stakeholders involved but have not been identified The objectives and objectivity of the project are communicated effectively to the stakeholders involved, & have been identified The objectives and objectivity of the project are communicated effectively to the stakeholders involved, & have been standardized in SOPs The objectives and objectivity of the project are communicated effectively to the stakeholders involved, & have been socialized The objectives and objectivity of the project are communicated effectively to the stakeholders involved, & have been evaluated for improvement
14 Involved Business Process Owner ERP business process mapping has not been defined. ERP business process mapping has been defined. ERP business process mapping have been standardized in SOPs ERP business process mapping have been socialized ERP business process mapping have been evaluated for improvement
15 Size of organization The organizational size that affects the success of an ERP project has not been defined The organizational size that affects the success of an ERP project has been defined The organizational size that affects the success of an ERP project has been standardized in SOPs The organizational size that affects the success of an ERP project has been socialized The organizational size that affects the success of an ERP project has been evaluated for improvement
16 Clear responsibilities of project The roles of project stakeholders have not been defined The roles of project stakeholders have been defined The roles of project stakeholders have been standardized in SOPs The roles of project stakeholders have been  socialized The roles of project stakeholders have been evaluated for improvement
17 Top management commitment Top management has not been actively involved in every process and monitors the progress of the ERP project Top management has been actively involved in every process and monitors the progress of the ERP project Top management has been actively involved in every process and monitors the progress of the ERP project, & have been standardized in SOPs Top management has been actively involved in every process and monitors the progress of the ERP project, & have been  socialized Top management has been actively involved in every process and monitors the progress of the ERP project, & have been evaluated for improvement
18 IT structure The IT team structure to coordinate ERP project activities from planning to post-go live has not been identified The IT team structure to coordinate ERP project activities from planning to post-go live has been identified The IT team structure to coordinate ERP project activities from planning to post-go live has been identified, &  have been standardized in SOPs The IT team structure to coordinate ERP project activities from planning to post-go live has been identified, &  have been socialized The IT team structure to coordinate ERP project activities from planning to post-go live has been identified, &  have been evaluated for improvement
19 Project planning (scope) The scope of the ERP project in determining the success of ERP implementation has not been defined The scope of the ERP project in determining the success of ERP implementation has been defined The scope of the ERP project in determining the success of ERP implementation have been standardized in SOPs The scope of the ERP project in determining the success of ERP implementation have been socialized The scope of the ERP project in determining the success of ERP implementation have been evaluated for improvement
20 Delivered to all parties Training activities have not been delivered to all parties involved. Training activities have been delivered to all parties involved. Training activities have been delivered to all parties involved, & have been standardized in SOPs Training activities have been delivered to all parties involved, & have been socialized Training activities have been delivered to all parties involved, & have been evaluated for improvement
21 Vision and mission The vision and mission of the organization that was revealed and communicated to all parties involved to support the implementation of the ERP project has not been defined The vision and mission of the organization that was revealed and communicated to all parties involved to support the implementation of the ERP project has been defined The vision and mission of the organization that was revealed and communicated to all parties involved to support the implementation of the ERP project has been defined, & have been standardized in SOPs The vision and mission of the organization that was revealed and communicated to all parties involved to support the implementation of the ERP project has been defined, & have been socialized The vision and mission of the organization that was revealed and communicated to all parties involved to support the implementation of the ERP project has been defined, & have been evaluated for improvement
22 Transfer knowledge There is no awareness from users and the benefits of knowledge transfer to improve the quality of users There is awareness from users and the benefits of knowledge transfer to improve the quality of users There is awareness from users and the benefits of knowledge transfer to improve the quality of users, & have been standardized in SOPs There is awareness from users and the benefits of knowledge transfer to improve the quality of users, & have been socialized There is awareness from users and the benefits of knowledge transfer to improve the quality of users, & have been evaluated for improvement
23 IT staff’s skill & competency IT Staff does not have the expertise & experience in understanding the business processes of the system used. IT Staff have the expertise & experience in understanding the business processes of the system used. IT Staff have the expertise & experience in understanding the business processes of the system used, & have been standardized in SOPs IT Staff have the expertise & experience in understanding the business processes of the system used, & have been socialized IT Staff have the expertise & experience in understanding the business processes of the system used, & have been evaluated for improvement
24 Processes improvement The identification of process improvements before ERP implementation has not been identified The identification of process improvements before ERP implementation has been identified The identification of process improvements before ERP implementation have been standardized in SOPs The identification of process improvements before ERP implementation have been socialized The identification of process improvements before ERP implementation have been evaluated for improvement

4. Conclusion

      The ERP implementation process for the industry has a high complexity, which will risk a high failure rate. However, the problem of the complexity of ERP implementation in the textile industry can be resolved by identifying readiness factors that focus on four main components such as processes, people, organizational, and technology before implementing ERP. Thus, the organizations can identify weaknesses and anticipate improvements, thereby increasing the success rate of ERP implementation. The research result shows that the score of organizational variable is 43.50% and the domain factors that influence ERP readiness assessment with significance factors are project champion (9.14%), cross-functional support (9.87%), project planning scope (5.19%), vision and mission (6.98%), and communication (7.82%).  For this reason, it is necessary to develop of ERP readiness assessment, so that the managerial level can easily analyze the maturity level of the organization that need to be improved. The author realizes that this research has limitations in conducting case studies in the textile industry. For this reason, this research can be continued with case studies in the wider industry, and this research can also be developed by developing an ERP readiness assessment module as an information system for the management level in deciding to continue implementing ERP.

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