MATURITY MEASUREMENT OF ERP IMPLEMENTATION IN STUDENT LIFE CYCLE MANAGEMENT BASED VAL IT FRAMEWORK

Transcription

1 MATURITY MEASUREMENT OF ERP IMPLEMENTATION IN STUDENT LIFE CYCLE MANAGEMENT BASED VAL IT FRAMEWORK Abdul Rozaq 1, Riyanarto Sarno 1 1 Informatics Department, faculty of Information Technology, Institute of Technology Sepuluh Nopember (ITS) Gedung Teknik Informatika, Kampus ITS, Surabaya, Indonesia rozaq_poliban@yahoo.com 1, riyanarto@if.its.ac.id 2 ABSTRACT In the application of information technology (IT) in an enterprise often need more time to adapt, because the new information technology is a new environment for the user or the organization in completing the work [10]. University as an institution that provides services to its customers in this case the students need the support of information technology that can enhance productivity and apply their IT course will provide value, and so far the lack of measurement of IT implementation to achieve the desired value by the company using Val IT Framework. Based on the results of research conducted by the ITGI in Building the Business Case for COBIT and Val IT: Executive Briefing [3], explains that there are multiple domains of the Val IT processes [6] which has a high impact on IT goals and have high impact with business goals of an enterprise. Next will be used to measure the application of ERP[11] in SLCM. From this research will show how to measure the ERP implementation of information technology in the SLCM using Val IT has a high impact on the IT goals and having a high impact with a company's business goals. Keywords: Val IT, Framework, Maturity, ERP, SLCM 1 INTRODUCTION Implementation of a information systems computer-based can be viewed as an attempt introduction of new technology. Therefore, before information system computer-based is implemented there should be planning for the new system can be received well by users [2]. Process activity carried out by an organization will not run properly, effectively and efficiently if not supported by reliable information. Higher Education as an institution that requires the support of information technology in improving quality of education both in terms of the education provider and its customers such as students not optimally applied. It all can be seen from the results of research conducted by the EDUCAUSE Center for Applied Research (ECAR) in december 2002, found that of 480 respondents colleges that implement ERP as an IT support as much as 54% of respondents found universities decreased productivity [10]. This shows that, when applied in information technology, the company is experiencing changes in completing the work environment of each job, so that necessary adjustments both in the user should or organization itself. Because each organization's existing change in expectations is that there is a value that can be obtained tangible and intengible. In an effort to achieve the desired productivity according to the organization's business objectives with information technology support, we need a measurement that can show the value obtained. In this research presents the method of measuring the readiness of the application of information technology has an impact on the IT objectives and business goals of an organization will use the Val IT framework. 2 THEORY, MODEL, ANALYSIS, DESIGN, AND IMPLEMENTATION 2.1 Theory IT Governance Institute (ITGI), the agency that issued a framework for IT governance, about a month April 2006 issued a complementary framework that can be used to measure IT value, called Val IT. Today, ITGI has released Val IT Framework 2.0 in the year 2008 and an improvement of the previous version [7]. Several benefits can be obtained from the implementation of the Val IT are as follows [20]: 1. Increase understanding and transparency of costs, risks, and benefits resulting from VIII-47

2 VIII-48 The 6 th International Conference on Information & Communication Technology and Systems decisions based management by adequate information. 2. Improving the ability of selecting investments that have the greatest potential return benefits. 3. improving the likelihood of success in implementing the selected investment so that investment can yield benefits as expected. 4. Reduce costs by just doing what should be done and immediately take corrective action or stop investments that do not produce the expected potential benefits. 5. Reduce the risk of failure, especially high risk of failure. 6. Reduce the shock associated with cost and delivery of IT, thus increasing business value, reduce unnecessary costs and increase confidence in the overall IT. Val IT can be applied to IT investments that support the business, the sustainability of business investments, growth or business transformation with IT support to critical components where IT provides full support end-to-end to the whole process of value creation in the enterprise [20]. This research will measure the implementation of ERP using Val IT Framework which consists of domain three processes, i.e.: Value Governance, Portfolio Management, Investment Management have different modules such as assets management, control, financial accounting, manufacturing, human resources, planning and development and so forth [18], and has many benefits provided into the system [14][18]. Figure 2. ERP Implementation Step[1] Figure 2. describes the stages that must be made in the implementation of ERP in an organization, so what the objectives of the ERP implementation can be achieved. 2.2 Model In this section we will discuss a conceptual framework to clarify the issues raised in this study, as for the conceptual framework can be seen in Figure 3. Figure 1. The linkage between the three Val IT Processes [7] Val IT process objectives [20]: 1. VG objective is to optimize the value obtained for the IT investment 2. PM objective is to ensure that all IT investment portfolio in line and make an optimal contribution to the organization's strategic objectives 3. IM objective is to ensure that IT investment program in the organization can provide optimal results with reasonable cost and within the limits of acceptable risk Enterprise Resource Planning (ERP) Enterprise Resource Planning (ERP) is a software system that integrates and automates processes in large companies [14]. ERP packages Figure 3. Conceptual Framework Based on the conceptual framework in figure 3. Hypotheses can be formulated as follows: H0. ERP implementation does not give value IT? H1. ERP Implementation give value IT? 2.3 Design To answer the hypotheses, this research will be conducted in several stages i.e.: data collection, calculation of the level of maturity. 2.4 Data Collection At this stage of data collection will be carried out several steps in accordance with a predefined data points. The technique applied in data collection, i.e.:

3 Maturity Measurement of ERP Implementation in Student Life Cycle Management based Val IT Framework-Abdul Rozaq VIII Documentation Review 2. Interview 3. Observation 4. Questionnaires After the data collected through the four stages above, the data obtained will be used as reference for the assessment to be undertaken. 2.5 Maturity Level Assessment At this phase will be measured levels of maturity (maturity level) using Val IT Maturity Model. Table 1. Maturity Level Criteria[6][7] determined based on achievement of specified criteria in the Val IT Maturity Model. The formula that can be used to calculate the maturity level are: MLv n n 1 MLvco n n Where : MLv = Maturity Level Domain Process v v = 1,2, MLvco n = Maturity Level control objectives Domain Process v Existence Level Domain Val IT Processes In the year 2008 ITGI conducted a study that aims to determine the relationship between organizational performance and corporate governance with IT support based on COBIT 4.1, Val IT 2.0 [3] and the results can be seen in figures 5 and 6. Assessment of maturity levels used in this study can be seen in figure 4. Figure 4. The assessment process maturity levels For score calculation process level maturity can be seen in table 2. Table 2. Maturity Level Scoring In the calculation for determining the level maturity level using a range of values 0 (non existent) to 5 (optimized) [6][7]. For the assessment level is Figure 5. High Impact IT Goals and High Impact Business Goal[2] In the figure 5. Is a relationship that has a strong impact among the business goals with IT goals, where there are business objectives that are included in the top ten business goal, i.e. B_Int1 "Improve and maintain business process functionality" that relate to IT goals are included in the Top Ten IT goals, i.e. IT_Corp5 Improve IT s cost-efficiency, IT_Corp6 Align the IT Strategy to The Business Strategy, IT_User3 Translate business functional and control requirements into effective and efficient automated solution [3] [4][6][17]. From the research that has been done on the IT and business managers from 538 companies

4 VIII-50 The 6 th International Conference on Information & Communication Technology and Systems ISACA members who have been surveyed for the application of 56 IT governance processes related to COBIT and Val IT and firm performance of 18 goals and 20 objectives of IT business. Group of respondents came from different regions around the world, with the majority of North America (40 percent), Asia (26 percent) and Europe (19 percent). Industry segment that represents the sector [3] : 1. FIN represents banks, financial and insurance companies. 2. GIH includes government institutions, utilities (e.g., energy, oil and gas) and the healthcare sector. 3. ITM represents companies from IT professional services, telecommunications and media. 4. MFT includes companies from the manufacturing and pharmaceutical industry. 5. RET represents companies from the retail, distribution and transportation industries. key performance indicators (Key Performance Indicators (KPI)), an indicator for measuring how well the performance of IT processes to enable the achievement of goals [17]. Based on the mapping, obtained by objective IT_User3 (ITG6) "Defining how business functional and control requirements are translated into automated solutions that effectively and efficiently" in alignment with business purpose 10/B_Int1 number (BG_10) "improvement and maintenance of the functionality of business processes" [3][ 6][17]. Figure 8. KGI and KPI scema[1] [3][5][15] Figure 6. High Impact IT Processes and High Impact IT Goals[3] Figure 6. shows that the IT Goal IT_Corp6, IT_User1, IT_Fut1, and IT_Fut3, where IT Goal IT_Corp6 "Align the IT Strategy to the Business Strategy" and IT_User1 "Provider service offering and service levels in line with business requirements" is the second IT Goals included in the top 10 IT Goals [3], a related domain of the Val IT processes VG2, VG5, VG6, PM1, IM7 [3] [4] [6] [17]. The results are shown in Figure 5 and 6 will be the basis of key indicators in determining the destination (Key Goal Indicators (KGI)) is a target or targets to be achieved by a process or activity within the organization. [15] and determination of Figure 8. Explaining the relationship between the High Impact Val IT Processes (VG2, VG5, VG6, PM1, IM7) against IT_User3/ITG_6 and their relationship with B_Int1/BG_10 "Improve and maintain business process functionality" which is the Top Ten Business Goal [3][4][5][17]. Furthermore, we will see the level of the existence of the Val IT domain. COBIT process are chosen based on relationships with the IT business goal BG_10/ IT goal ITG_6 and having a High Impact COBIT Processes, namely AI_1, AI_2, and AI_16 [6][17]. Because AI_16 not included in the High Impact COBIT Processes will not be done his calculations ML [3], COBIT process only(ai_1, AI_2) which will be calculated Maturity Level (ML), which aims to find out, whether with the support of good IT processes (ML high) will support Val IT is good. 3 RESULT 3.1 Maturity Level Measurement Val IT Results of measurement maturity level that has been conducted to determine the value gained in the

5 Maturity Measurement of ERP Implementation in Student Life Cycle Management based Val IT Framework-Abdul Rozaq VIII-51 implementation of ERP in universities can be seen in table 3: Table 3. Recapitulation of the average maturity level Val IT Process Nonexistent Initial/ Repeatable Defined Managed and Optimised ad hoc but intuitive Process Measurable , ,02 Where : figure 11. Maturity Scale [4] Enterprise Current Status Industry Average Enterprise Target From the results shown in table 3, can be displayed in graphical form for each level of maturity value of each domain name on the Val IT processes figure 6 and figure 7. ML Value Governance ML Portfolio Management ML Investment Management Description Ranking used: 0 Management processes are not applied at all 1 Processes are ad hoc and disorganized 2 Processes follow regular pattern 3 Processes are documented and communicated 4 Processes are monitored and measured 5 Good practices are followed and automated Figure 9. Score for maturity level Val IT Processes 1. ML Value Governance 2. ML Portfolio Management 3. IM Investment Management Figure 10. Maturity Level Val IT Processes To know more clearly the results of the calculation process maturity level and Val IT can be described by using Maturity Scale, as shown in Figure 11. Figure 11 shows that the implementation of ERP in the SLCM to Value Governance and Portfolio Management at the level of "Define Proses" that is processes has been documented and communicated at the level of institution, for Investment Management processes are still at the level of Repeatable but intuitive, which means in this process still need to do a little maintenance, thereby increasing the value gained in the implementation of ERP in the SLCM. However, overall the process domain third if the average is taken at the level of "Define Process". 3.2 Existence Level Domain Val IT Processes From the results of measuring the degree of domain existence Val IT processes shown in the figure 8. [1], the result as shown in Figure 12

6 VIII-52 The 6 th International Conference on Information & Communication Technology and Systems 3.3 Measurement Results COBIT Processes Maturity Level The measurement results COBIT process maturity level and maturity level to know the domain name and AI_2 AI_1 process can be seen in table AI-1 AI_2 Figure 12. Implementation of the existence of the Val IT processes In the figure 13. explain that to the level of domain existence process VG2, VG5, VG6, PM1, IM7 Val IT Framework on implementation of ERP in SLCM highest average at both levels, namely 72%., which means the implementation of ERP in SLCM can be seen in the table 4: Table 4. Existence of Val IT Processes Val IT Percentage of Discription Processes Existence "Good" VG2 75% On the implementation of ERP in SLCM already defining and implementing good processes, such as forming the governance framework for an appropriate and consistent with the institutional environment, and provide support accountability (responsibility or obligation to give answer and explain the performance and actions of a person / body corporate / leadership organizations include the successful mission and failure to inform the authorities hold accountable) institutions. VG5 71% On the implementation of ERP in SLCM has done an effective governance monitoring well, with monitoring reports indicated the existence of the work VG6 65% On the implementation of ERP in SLCM've done as a form of selfevaluation and improvement of the sustainability of increases in the value management practice. PM1 76% On the implementation of ERP in the SLCM to the executive level has memahi about strategic IT issues and his understanding of the potential impact of IT on institutional strategies. IM7 72% On the implementation of ERP in the SLCM was to update the portfolio affected by the programs, projects, services, assets, and IT resources Figure 13. scores of each maturity level COBIT processes In Table 5 shows that the domain ML COBIT process AI_1: 3.02 and AI_2: So if the average is taken from both domains COBIT processes (AI_1, AI_2) is 3.00, which indicates that the application of ERP in SLCM with IT support at the level of Define Process, which means that the processes are documented and communicated to the institution level widely. 3.4 Statistical Test Results Calculation Process Maturity Level COBIT and Val IT One Way Anova Test After scoring ML Val IT and COBIT is established, then the next step is to conduct statistical tests using One Way Anova which hypothesis i.e.: H0 : the mean of each group is the same method H1: are the mean of two or more groups are not the same method Table 6. Average of ML Val IT and CoBit processes In table 6 indicated an average score of the ML Val IT and COBIT are grouped by level of process, namely 1. Val IT Low Level, 2. Val IT High Level, 3. COBIT Low Level, 4. COBIT High Level.

7 Maturity Measurement of ERP Implementation in Student Life Cycle Management based Val IT Framework-Abdul Rozaq VIII-53 Table 7. Result Homogenety of Variances Test Homogeneity test results-of-variance boxes on the table 7 indicates sig. (P-value) of 0.105, indicating that H0 is accepted, it can be proved that the mean of two or more groups of the same ML. Table 8. Result One Way Anova Test One way ANOVA test results that have been conducted indicate that the value-f test is not significant in test group, was indicated by the value F value of which is smaller than F (3.9), reinforced with p = 0195 larger than the critical value α = This means p-value shows significant similarities. Table 9. Result Post Hoct Test Tukey post hoc test for multiple comparisons indicate that the average difference between the ML is not statistically significant and the mean significantly. From One Way ANOVA test results can be concluded that the calculation of ML for Val IT and COBIT has similar values and can be interpreted that when applied with good IT processes, it will generate a value or Val IT is good too. This can be seen in Figure 14. figure 14. Graphs of Variant Analysis 3.5 Recommendations for Val IT Processes Based on calculations Val IT process maturity level, there are several proposals that could be given to each process, i.e.: Recommendations for Value Governance Processes a. Value Governance 2. Defining and implementing processes For proposals that are designated to process VG2, i.e.: 1. The budget is used for IT investments should be prioritized and continue to be considered for institutional advancement. 2. Defines the processes to clarify the relationship between institutional goals with IT goals, and can be implemented in a consistent and sustainable. b. Value Governance 5. Establish effective governance monitoring. 1. The regulatory process requires a technique which can provide information in brief, clear, looking at the overall portfolio, program and IT performance and support decision making, perealisasi decisions and monitoring results expected from what is being achieved c. Value Governance 6. Continuously improve value management practices. 1. Lessons from value management should be reviewed regularly and necessary changes must be planned, implemented and monitored to increase the value system, portfolio management and investment management processes and practices so that they can continue to improve

8 VIII-54 The 6 th International Conference on Information & Communication Technology and Systems value management practices and maximize the value of Recommendation for Portfolio Management processes a. Portfolio Management 1 Establish strategic direction and target investment mix. 1. Alignment between the strategic role of institutions with Information Technology at the institution 2. Determining the direction of investment business in determining the alignment of Information Technology and business strategy goals and objectives. 3. Thorough understanding of alignment between business functions with IT functions, the impact of IT and communicating the broad assurance in institutions Recommendation for Investment Management processes a. Investment Management 7 Update operational IT portfolio 1. Update the contents of all IT portfolios affected by the investment program. These can include, but are not limited to, the portfolio of IT projects, IT services, IT applications, IT assets and other IT resources. 4 CONCLUSION AND DISCUSSION Based on that research, which measured the implementation of ERP in SLCM using Val IT Framework can be concluded that: 1. In this research only measured values that are intangible, because it related to financial data were not obtained. 2. The measurement results can illustrate the value gained from the implementation of ERP, with the support of good IT processes produce Val IT is good to be on the level of maturity levels define the meaning Val IT has been well documented and has been communicated to the institutional environment. 3. Implementation of ERP as a form of support tenologi provide information on college grades, which can increase the productivity of teaching and learning process both in terms of students and teaching staff and further in general terms of organization. For the future work of the research is the measurement of SLCM Implementation of ERP in the case of heterogeneous (tangible and intangible). REFERENCES [1] Edwin T. Cornelius III (2006) Seven Steps in the ERP Process, An Overview of the Higher Ed ERP Journey, Collegiate Project Services. [2] Frenzell, Caroll W (1996) Management of Information Technology, Boy & Fraser Publishing Company, USA. [3] IT Governance Institute (2009) Building the Business Case for CobiT and Val IT: Executive Briefing, IT Governance Institute. [4] IT Governance Institute (2008) Understanding How Business Goals Drive IT Goals, Executive Briefing, IT Governance Institute. [5] IT Governance Institute (2007) A Cosmological Approach to IT Governance: Val IT and COBIT Lessons Learned at the United Nations, IT Governance Institute. [6] IT Governance Institute (2007) COBIT 4.1 Framework Control Objectives, Management Guidelines, Maturity Models, IT Governance Institute. [7] IT Governance Institute (2008) Enterprise Value: Governance of IT Investments, The Val IT Framework 2.0, IT Governance Institute. [8] IT Governance Institute (2008) Enterprise Value: Governance of IT Investments, Getting Started With Value Management, IT Governance Institute. [9] IT Governance Institute (2007) IT Governance Implementation Guide 2nd. [10] Jogiyanto Hartono (1999) Analisis dan design: Sistem Informasi Pendekatan Terstruktur Teori dan Praktek Aplikasi Bisnis, Andi Yogyakarta. [11] Kimberling E, 7 Critical Success Factors to Make Your ERP or IT Project Successful, ERP and Business Consultant, Panorama Consulting Group. Available at: [12] Monk, Ellen and Wagner, Brett (2009) Concepts in Enterprise Resource Planning. 3rd.ed. Course Technology Cengage Learning. Boston, Massachusetts. [13] Richard West, Stephen L. Daigle (2004) Total Cost of Ownership: A Strategic Tool for ERP Planning and Implementation, California State University, January 6, [14] Rico, David F., ERP in Higher Education Master Thesis. [15] SAP Student Life Cycle Management The Solution for Today s universities SAP

9 Maturity Measurement of ERP Implementation in Student Life Cycle Management based Val IT Framework-Abdul Rozaq VIII-55 Solution in Detail - SAP Student Lifecycle Management. Available at: ns/studentlifecyclemanagement.epx [16] Sarno, Riyanarto (2009) Sistem Strategi Sukses Bisnis dengan Teknologi Informasi Berbasis Balanced Scorecard dan COBIT, ITS Press. [17] Sarno, Riyanarto (2009) Audit Sistem & Teknologi Informasi, ITS Press. [18] Sarno, R. and Herdiyanti, A. (2010) Information Technology Policies for Enterprise Resource Planning Practices to Improve Customer Orientation and Service, International Journal of Computer Science and Network Security 10(5): [19] Sarno, R. and Herdiyanti, A. (2010) A Service Portfolio for an Enterprise Resource Planning, International Journal of Computer Science and Network Security 10(3): [20] Tadinen, Helena (2005) Human resources management aspects of Enterprise Resource Planning (ERP) Systems Projects, Master s Thesis in Advanced Financial Information Systems. [21] Tanuwijaya, H. and Sarno, R. (2010) The Comparation of CobiT Maturity Model and Structural Equation Model for Alignment Measurement of University Academic Regulations and Information Technology Goals, International Journal of Computer Science and Network Security 10(6). [22] Teguh Nurhadi Suharsono (2008) Penggunaan Val It Framework Untuk Menilai Perencanaan Investasi Teknologi Informasi [23] Wina Witanti and Falahan (2007) Kerangka Kerja Evaluasi Investasi Teknologi Informasi [24] Wasilah (2007) Perancangan IT Governance Untuk Peningkatan Kualitas Layanan Akademik

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