ACKNOWLEDGEMENT. First of all, the author would like to thank God for everything He gave to
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1 ACKNOWLEDGEMENT First of all, the author would like to thank God for everything He gave to allow me to finish this thesis. It happened only because of His bless, guidance and strength. This thesis is written to fulfill the requirements for Master of Management in Information System of Bina Nusantara. In this opportunity, the author would like to say gratitude to the following for the supports, suggestions, and contributions that have been given through to me for the completion of this thesis: 1. Firdaus Alamsjah, Ph.D., as my my thesis advisor for his guidelines, great support, and his time for this thesis. 2. All of our lecturers and academic staff at Binus Business School. 3. My classmates for their support and for the wonderful year we spent together at Binus Business School 4. My colleagues at Honeylady Group who have helped me finish this thesis especially to Lily Ngadiman. 5. My families for their love, pray, and support. The author would like to welcome all feedbacks and inputs about this thesis. The author hopes this thesis will give additional knowledge of ERP implementation in improving Supply Chain Effectiveness especially in Indonesia. iv
2 ABSTRACT This article evaluates the perception of executives working in the area of Supply Chain Management and IT towards the role of IT in improving supply chain effectiveness. The study was conducted in companies in Indonesia in the industry area, whether it s a manufacturing, pharmaceutical, consumer goods or any other industry. Finding from this exploratory study are twofold. First, the main finding of experts/scm members experiences is that ERP positively contributes towards some parameters of supply chain effectiveness, further integration of activities between suppliers and customers across the entire supply chain, on-going changes in supply chain needs and required flexibility from IT and supply chains consisting of several independent enterprises. The second finding of this study emerged as some limitations of the current ERP system and do not contribute in supply chain effectiveness, more standardized processes and information, the need for worldwide IT systems and greater transparency of the marketplace. The panel experts saw only a modest role for ERP in improving future supply chain effectiveness and a clear risk of ERP actually limiting progress in supply chain management. The following key limitations of current ERP systems in providing effective SCM support emerge as the third finding from this exploratory study: their insufficient extended enterprise functionality in crossing organizational boundaries, their inflexibility to ever-changing supply chain needs, their lack of functionality beyond managing transactions and their closed and non modular system architecture. In modern supply chain management, the unit of analysis has become a network of organizations, rendering these ERP products inadequate in the new economy. Keywords: supply chain management, ERP systems, IT v
3 TABLE OF CONTENTS Front Page. i Statement of Purpose... ii Supervisor Approval iii ACKNOWLEDGMENET... iv ABSTRACT. v TABLE OF CONTENTS vi LIST OF TABLES... ix LIST OF FIGURES.. x CHAPTER I INTRODUCTION... Error! Bookmark not defined Background... Error! Bookmark not defined Problem Identification... Error! Bookmark not defined Objective and Significance... Error! Bookmark not defined Research Scope... Error! Bookmark not defined. CHAPTER II LITERATURE REVIEW... Error! Bookmark not defined Supply Chain... Error! Bookmark not defined Supply Chain Management (SCM)... Error! Bookmark not defined Bullwhip Effect... Error! Bookmark not defined. vi
4 2.3. Supply Chain Effectiveness... Error! Bookmark not defined The Role of IT... Error! Bookmark not defined Enterprise Resource Planning... Error! Bookmark not defined The Evolution of Enterprise Resource Planning.. Error! Bookmark not defined Enterprise Resource Planning and Supply Chain. Error! Bookmark not defined. CHAPTER III RESEARCH METHODOLOGY... Error! Bookmark not defined Research Concept Framework... Error! Bookmark not defined Data Collection Methodology... Error! Bookmark not defined Population... Error! Bookmark not defined Sample... Error! Bookmark not defined Instrument Data Collection... Error! Bookmark not defined Validity and Reliability... Error! Bookmark not defined Research Model... Error! Bookmark not defined Analysis and Research Methodology... Error! Bookmark not defined Hypothesis... Error! Bookmark not defined Regression Analysis Method... Error! Bookmark not defined. CHAPTER IV ANALYSIS AND RESULT... Error! Bookmark not defined. vii
5 4.1. Respondent and Instrument... Error! Bookmark not defined Descriptive Analysis... Error! Bookmark not defined Data Analysis... Error! Bookmark not defined Validity and Reliability... Error! Bookmark not defined Regression Analysis & Result... Error! Bookmark not defined. CHAPTER V CONCLUSIONS AND RECOMMENDATIONS Error! Bookmark not defined Conclusions... Error! Bookmark not defined Recommendations... Error! Bookmark not defined. BIBLIOGRAPHY... Error! Bookmark not defined. REFERENCES... Error! Bookmark not defined. APPENDIX.. A-1 CURICULLUM VITAE viii
6 LIST OF TABLES Table 4.1. Validity Analysis Result for Delivery Table 4.2. Validity Analysis Result for Quality of Information Table 4.3. Validity Analysis Result for Cost Table 4.4. Validity Analysis Result for Flexibility Table 4.5. Validity Analysis Result for Time Table 4.6. Validity Analysis Result for Enterprise Table 4.7. Validity Analysis Result for Supply Chain Effectiveness Table 4.8. Reliability Analysis Result Table 4.9. Regression Model Summary Table Analysis of Variance (ANOVA) Table Regression Coefficients ix
7 LIST OF FIGURES Figure 2.1. Evolution of ERP Figure 2.2. Close Loop MRP. 25 Figure 2.3. Enterprise Resources Planning Figure 2.4. The business processes and functions supported by the ERP System 32 Figure 3.1. Research Model Figure 4.1. Type of Industry Figure 4.2. Type of ERP System Figure 4.3. Primary Industry Figure 4.4. Number of Major Products Figure 4.5. Job Roles Figure 4.6. Size of Organizations Figure 4.7. Types of Modules x
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