The Risk Analysis of System Selection and Business Process Re-Engineering Towards the Success of Enterprise Resource Planning Project for Small and Medium Enterprise

This paper contributes to the discussion on Enterprise Resource Planning (ERP) implementations in the context of small and medium size enterprise (SME). The ignorance of ERP implementation risks would be the major for SME. Several risk factors have been identified to help enterprises to better manage their ERP. SME needs to contemplate about numerous things, primarily the cost factors of implementation before taking the first step in implementation ERP system. SME has restricted resources, budgets and great sensitivity to costs so ERP implementation is so huge for small enterprise. This study chooses the critical adequate system selection risk and business process re-engineering risk of the ERP implementation, the purpose of this study is to identify and assess relation among these risk factors of ERP through the SME that impact to cost reduction and other hand cost reduction on project success. The instrument used for data collection is questionnaire. Respondents are staffs that have knowledge of the ERP and data from questionnaire analyzed with SmartPLS software