MATURITY MEASUREMENT OF ERP IMPLEMENTATION IN STUDENT LIFE CYCLE MANAGEMENT BASED VAL IT FRAMEWORK
1 Informatics Department, faculty of Information Technology, Institute of Technology Sepuluh Nopember (ITS)
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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.
1. Increase understanding and transparency of costs, risks, and benefits resulting from
Several benefits can be obtained from the implementation of the Val IT are as follows [20]:
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].
2.1 Theory
IMPLEMENTATION
2 THEORY, MODEL, ANALYSIS, DESIGN, AND
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.
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.
SLCM
MATURITY MEASUREMENT OF ERP IMPLEMENTATION IN
STUDENT LIFE CYCLE MANAGEMENT BASED VAL IT
FRAMEWORK
Keywords: Val IT, Framework, Maturity, ERP,
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.
2 ABSTRACT
1 ,
Gedung Teknik Informatika, Kampus ITS, Surabaya, Indonesia Email: [email protected]
1
, Riyanarto Sarno
1
Abdul Rozaq
1 INTRODUCTION
th
VIII-48 The 6 International Conference on Information & Communication Technology and Systems decisions based management by adequate have different modules such as assets management, information. control, financial accounting, manufacturing,
2. human resources, planning and development and so
Improving the ability of selecting investments that have the greatest potential return benefits. forth [18], and has many benefits provided into the
3. system [14][18]. 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
Figure 2. ERP Implementation Step[1] confidence in the overall IT.
Figure 2. describes the stages that must be made in Val IT can be applied to IT investments that the implementation of ERP in an organization, so support the business, the sustainability of business what the objectives of the ERP implementation can investments, growth or business transformation be achieved. 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].
2.2 Model
This research will measure the implementation In this section we will discuss a conceptual of ERP using Val IT Framework which consists of framework to clarify the issues raised in this study, domain three processes, i.e.: Value Governance, as for the conceptual framework can be seen in
Portfolio Management, Investment Management Figure 3.
Figure 1. The linkage between the three Val IT Processes [7] Figure 3. Conceptual Framework
Val IT process objectives [20]: 1.
VG objective is to optimize the value obtained Based on the conceptual framework in figure 3. for the IT investment
Hypotheses can be formulated as follows: 2. PM objective is to ensure that all IT
H0. ERP implementation does not give value IT? investment portfolio in line and make an H1. ERP Implementation give value IT? optimal contribution to the organization's
2.3
strategic objectives
Design 3.
IM objective is to ensure that IT investment To answer the hypotheses, this research will be program in the organization can provide conducted in several stages i.e.: data collection, optimal results with reasonable cost and within calculation of the level of maturity. the limits of acceptable risk
Enterprise Resource Planning (ERP)
2.4 Data Collection
Enterprise Resource Planning (ERP) is a At this stage of data collection will be carried out software system that integrates and automates several steps in accordance with a predefined data processes in large companies [14]. ERP packages points. The technique applied in data collection, i.e.:
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VIII-49 Framework-Abdul Rozaq 1. determined based on achievement of specified
Documentation Review 2. criteria in the Val IT Maturity Model. The formula
Interview 3. that can be used to calculate the maturity level are:
Observation
n 4.
Questionnaires After the data collected through the four stages MLvco
n n
above, the data obtained will be used as reference
1
MLv for the assessment to be undertaken. n
Where :
2.5 MLv = Maturity Level Domain Process v Maturity Level Assessment
v = 1,2, …
At this phase will be measured levels of maturity MLvco Maturity Level control objectives
n = (maturity level) using Val IT Maturity Model.
Domain Process v
Table 1. Maturity Level Criteria[6][7]
2.5.1 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 Figure 5. High Impact IT Goals and High Impact Business Goal[2]
For score calculation process level maturity can be In the figure 5. Is a relationship that has a seen in table 2. strong impact among the business goals with IT
Table 2. Maturity Level Scoring
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] In the calculation for determining the level maturity [4][6][17]. level using a range of values 0 (non existent) to 5
From the research that has been done on the (optimized) [6][7]. For the assessment level is
IT and business managers from 538 companies VIII-50 The 6
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IT processes VG2, VG5, VG6, PM1, IM7 [3] [4] [6] [17].
IT
3.1 Maturity Level Measurement Val
3 RESULT
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.
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].
Figure 8. KGI and KPI scema[1] [3][5][15]
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].
Based on the mapping, obtained by objective
Indicators (KPI)), an indicator for measuring how well the performance of IT processes to enable the achievement of goals [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 key performance indicators (Key Performance
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
International Conference on Information & Communication Technology and Systems
IT_User1, IT_Fut1, and IT_Fut3, where IT Goal
Figure 6. shows that the IT Goal IT_Corp6,
Figure 6. High Impact IT Processes and High Impact IT Goals[3]
5. RET represents companies from the retail, distribution and transportation industries.
4. MFT includes companies from the manufacturing and pharmaceutical industry.
3. ITM represents companies from IT professional services, telecommunications and media.
2. GIH includes government institutions, utilities (e.g., energy, oil and gas) and the healthcare sector.
FIN represents banks, financial and insurance companies.
Industry segment that represents the sector [3] : 1.
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).
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Results of measurement maturity level that has been conducted to determine the value gained in the Maturity Measurement of ERP Implementation in Student Life Cycle Management based Val IT
VIII-51 Framework-Abdul Rozaq implementation of ERP in universities can be seen
Non- Initial/ Repeatable Defined Managed and Optimised
in table 3:
existent ad hoc but intuitive Process Measurable
1
2
3
4
5 Table 3. Recapitulation of the average maturity level Val IT Process 2,96 3.01 3,02 figure 11. Maturity Scale [4]
Where : Enterprise Current Status Industry Average Enterprise Target
From the results shown in table 3, can be displayed ML Value Governance in graphical form for each level of maturity value of each domain name on the Val IT processes figure 6 ML Portfolio Management and figure 7.
ML Investment Management Description Ranking used:
- – 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 11 shows that the implementation of ERP in
Figure 9. Score for maturity level Val IT Processes
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".
1. ML Value Governance
ML Portfolio Management 3.
3.2 Existence Level Domain Val IT 2.
Processes
IM Investment Management From the results of measuring the degree of domain
Figure 10. Maturity Level Val IT Processes existence Val IT processes shown in the figure 8.
[1], the result as shown in Figure 12 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. VIII-52 The 6
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3.3 Measurement Results COBIT Processes Maturity Level
IT and COBIT are grouped by level of process, namely 1. Val IT Low Level, 2. Val IT High Level,
In table 6 indicated an average score of the ML Val
Table 6. Average of ML Val IT and CoBit processes
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
3.4.1 One Way Anova Test
3.4 Statistical Test Results Calculation Process Maturity Level COBIT and Val IT
In Table 5 shows that the domain ML COBIT process AI_1: 3.02 and AI_2: 2.99. 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.
0.00 0.20 0.40 0.60 0.80 1.00 1.20 1 2 3 4 5 6 AI-1 AI_2 Figure 13. scores of each maturity level COBIT processes
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 3.
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
International Conference on Information & Communication Technology and Systems
VG6 65% On the implementation of ERP in SLCM've done as a form of self- evaluation 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.
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
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.
Percentage of Existence "Good" Discription
Table 4. Existence of Val IT Processes Val IT Processes
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:
In the figure 13. explain that to the level of domain existence process VG2, VG5, VG6, PM1, IM7 Val
Figure 12. Implementation of the existence of the Val IT processes
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3. COBIT Low Level, 4. COBIT High Level. Maturity Measurement of ERP Implementation in Student Life Cycle Management based Val IT
VIII-53 Framework-Abdul Rozaq
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 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 One way ANOVA test results that have been be given to each process, i.e.: conducted indicate that the value-F test is not
3.5.1
significant in test group, was indicated by the value
Recommendations for Value
F value of 2.151 which is smaller than F (3.9),
Governance Processes
reinforced with p = 0195 larger than the critical
a. Governance
2. Defining and Value val ue α = 0.05. This means p-value shows implementing processes significant similarities.
For proposals that are designated to process VG2, i.e.:
Table 9. Result Post Hoct Test 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 Tukey post hoc test for multiple comparisons information in brief, clear, looking at indicate that the average difference between the ML the overall portfolio, program and IT is not statistically significant and the mean performance and support decision significantly. making, perealisasi decisions and
From One Way ANOVA test results can be monitoring results expected from what concluded that the calculation of ML for Val IT and is being achieved COBIT has similar values and can be interpreted c. that when applied with good IT processes, it will Value Governance 6. Continuously improve value management practices. generate a value or Val IT is good too. This can be 1. seen in Figure 14.
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 th
VIII-54 The 6 International Conference on Information & Communication Technology and Systems value management practices and
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Solution for Today’s universities SAP
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VIII-55 Solution in Detail - SAP Student Lifecycle Management. Available at: www.sap.com/industries/highered/featuresfunctio ns/studentlifecyclemanagement.epx
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