Risk Assessment of Enterprise Resource Planning System Implementation Using Fuzzy Analytical Network Process: A Case Study in DSP and DKA Universitas Islam Indonesia

Abstract

Enterprise Resource Planning (ERP) system is technology of information system, which designed to provide useful information to support strategy, operations, management analysis, and decision-making functions in an organization. ERP integrates primary business processes. Nowadays, ERP is already used by a wide range of sectors, including education sector, especially higher education or university. Lots of advantages would gain by the company that implement ERP system, such as can improve the internal communications between departments or divisions and eliminate the manual processes. On the other hand, implement ERP also has high risk to be failed. Whereas, implement ERP takes lots of time and money. Universitas Islam Indonesia (UII) is one of the university in Indonesia that implement ERP in their system. UII using three modules in ERP, which including the Material Management, Financial Accounting and Controlling module. This research using Fuzzy Analytical Network Process method to assess the risks of implementation ERP in Universitas Islam Indonesia order to make the organization successfully implement the ERP system. The result shows that there are 16 risks that can be identified, with the highest risk factor is ‘Lack of knowledge while implement ERP SAP’ with weight of 0.099. The second risk is ‘Top management provide inadequate resources’. While ‘Top Management less understand with ERP system’ become the third highest factor. Followed by ‘Lack of testing’ as the fourth risk factor. The last highest fifth rank is ‘Less discipline while execution process’. In the risk evaluation, the forth and the fifth rank, categories as a high risk level, which should needs attention from the senior management.