Business Improvement Strategy for Local ERP Companies in Indonesia: SWOT Method, Fuzzy AHP-TOPSIS
Abstract
Enterprise Resource Planning (ERP) is a crucial digital system for businesses to increase efficiency and productivity in the digital era. However, a case study company in Indonesia has experienced a decline in sales over the last three years. To improve the company's business, a systematic approach using the SWOT method, fuzzy AHP (F-AHP), and TOPSIS was employed. The SWOT method classifies internal and external factors into strengths, weaknesses, opportunities, and threats, which are then used to formulate alternative strategies using the TOWS matrix. The TOPSIS method prioritizes these strategies based on the SWOT factor weights. Based on the Action Priority Matrix, several strategic priorities were selected to increase the income of the local ERP-producing company in Indonesia: expanding the marketing network, offering a new business scheme, and forming a community to increase brand awareness.
Keywords
Full Text:
PDFReferences
Aldea, A., Iacob, M.-E., Quartel, D., & Franken, H. (2013). Strategic planning and enterprise achitecture. Proceedings of the First International Conference on Enterprise Systems: ES 2013, 1–8. https://doi.org/10.1109/ES.2013.6690089
Avikal, S., Nigam, M., & Ram, M. (2022). A hybrid multi criteria decision making approach for consultant selection problem in ERP project. International Journal of System Assurance Engineering and Management, 13(S2), 941–950. https://doi.org/10.1007/s13198-021-01505-0
Ayağ, Z., & Samanlioglu, F. (2020). A hesitant fuzzy linguistic terms set-based AHP-TOPSIS approach to evaluate ERP software packages. International Journal of Intelligent Computing and Cybernetics, 14(1), 54–77. https://doi.org/10.1108/IJICC-07-2020-0079
Ayhan, M. B. (2013). A Fuzzy Ahp Approach For Supplier Selection Problem: A Case Study In A Gearmotor Company. International Journal of Managing Value and Supply Chains, 4(3), 11–23. https://doi.org/10.5121/ijmvsc.2013.4302
Azevedo, P. S., Azevedo, C., & Romão, M. (2014). Application Integration: Enterprise Resource Planning (ERP) Systems in the Hospitality Industry. A case study in Portugal. Procedia Technology, 16, 52–58. https://doi.org/10.1016/j.protcy.2014.10.067
Azimifard, A., Moosavirad, S. H., & Ariafar, S. (2018). Selecting sustainable supplier countries for Iran’s steel industry at three levels by using AHP and TOPSIS methods. Resources Policy, 57, 30–44. https://doi.org/10.1016/j.resourpol.2018.01.002
Basu, R., Upadhyay, P., Das, M. C., & Dan, P. K. (2012). An approach to identify issues affecting ERP implementation in Indian SMEs. Journal of Industrial Engineering and Management, 5(1). https://doi.org/10.3926/jiem.416
Baumgartner, R. J., & Rauter, R. (2017). Strategic perspectives of corporate sustainability management to develop a sustainable organization. Journal of Cleaner Production, 140, 81–92. https://doi.org/10.1016/j.jclepro.2016.04.146
Bhatt, N., Guru, S., Thanki, S., & Sood, G. (2021). Analysing the factors affecting the selection of ERP package: a fuzzy AHP approach. Information Systems and E-Business Management, 19(2), 641–682. https://doi.org/10.1007/s10257-021-00521-8
Cayir Ervural, B., Zaim, S., Demirel, O. F., Aydin, Z., & Delen, D. (2018). An ANP and fuzzy TOPSIS-based SWOT analysis for Turkey’s energy planning. Renewable and Sustainable Energy Reviews, 82, 1538–1550. https://doi.org/10.1016/j.rser.2017.06.095
Chatzoglou, P., Chatzoudes, D., Fragidis, L., & Symeonidis, S. (2016). Critical success factors for ERP implementation in SMEs. Proceeding of 2016 Federated Conference on Computer Science and Information Systems (FedCSIS), 1243–1252. https://doi.org/10.15439/2016F37
Dias, S., Espadinha-Cruz, P., & Matos, F. (2023). A Porter’s Five Forces Model Proposal for Additive Manufacturing Technology: A Case Study in Portuguese industry. Procedia Computer Science, 217, 165–176. https://doi.org/10.1016/j.procs.2022.12.212
Efe, B. (2016). An integrated fuzzy multi criteria group decision making approach for ERP system selection. Applied Soft Computing, 38, 106–117. https://doi.org/10.1016/j.asoc.2015.09.037
Elragal, A., & Haddara, M. (2012). The Future of ERP Systems: look backward before moving forward. Procedia Technology, 5, 21–30. https://doi.org/10.1016/j.protcy.2012.09.003
Evans, N. (2015). Strategic Management for Tourism, Hospitality and Events. https://doi.org/10.4324/9780203771495
GENÇ, T., KABAK, M., ÖZCEYLAN, E., & ÇETINKAYA, C. (2018). EVALUATION OF NATURAL GAS STRATEGIES OF TURKEY IN EAST MEDITERRANEAN REGION: A STRENGTHS-WEAKNESSES-OPPORTUNITIES-THREATS AND ANALYTIC NETWORK PROCESS APPROACH. Technological and Economic Development of Economy, 24(3), 1041–1062. https://doi.org/10.3846/20294913.2016.1253043
Gupta, H., & Barua, M. K. (2018). A framework to overcome barriers to green innovation in SMEs using BWM and Fuzzy TOPSIS. Science of The Total Environment, 633, 122–139. https://doi.org/10.1016/j.scitotenv.2018.03.173
Haddara, M. (2014). ERP Selection: The SMART Way. Procedia Technology, 16, 394–403. https://doi.org/10.1016/j.protcy.2014.10.105
Hsu, P.-F. (2013). Integrating ERP and e-business: Resource complementarity in business value creation. Decision Support Systems, 56, 334–347. https://doi.org/10.1016/j.dss.2013.06.013
Hwang, C.-L., Lai, Y.-J., & Liu, T.-Y. (1993). A new approach for multiple objective decision making. Computers & Operations Research, 20(8), 889–899. https://doi.org/10.1016/0305-0548(93)90109-V
Ibarra, D., Ganzarain, J., & Igartua, J. I. (2018). Business model innovation through Industry 4.0: A review. Procedia Manufacturing, 22, 4–10. https://doi.org/10.1016/j.promfg.2018.03.002
Jasper, M., & Crossan, F. (2012). What is strategic management? Journal of Nursing Management, 20(7), 838–846. https://doi.org/10.1111/jonm.12001
Kahraman, C., Demirel, N. Ç., Demirel, T., & Ateş, N. Y. (2008). A SWOT-AHP Application Using Fuzzy Concept: E-Government in Turkey. https://doi.org/10.1007/978-0-387-76813-7_4
Karande, P., & Chakraborty, S. (2012). A Fuzzy-MOORA approach for ERP system selection. Decision Science Letters, 11–21. https://doi.org/10.5267/j.dsl.2012.07.001
Kilic, H. S., Zaim, S., & Delen, D. (2014). Development of a hybrid methodology for ERP system selection: The case of Turkish Airlines. Decision Support Systems, 66, 82–92. https://doi.org/10.1016/j.dss.2014.06.011
Lin, C.-T., Chen, C.-B., & Ting, Y.-C. (2011). An ERP model for supplier selection in electronics industry. Expert Systems with Applications, 38(3), 1760–1765. https://doi.org/10.1016/j.eswa.2010.07.102
Mahmood, F., Khan, A. Z., & Bokhari, R. H. (2019). ERP issues and challenges: a research synthesis. Kybernetes, 49(3), 629–659. https://doi.org/10.1108/K-12-2018-0699
Mardani, A., Jusoh, A., MD Nor, K., Khalifah, Z., Zakwan, N., & Valipour, A. (2015). Multiple criteria decision-making techniques and their applications – a review of the literature from 2000 to 2014. Economic Research-Ekonomska Istraživanja, 28(1), 516–571. https://doi.org/10.1080/1331677X.2015.1075139
Mišanková, M., & Kočišová, K. (2014). Strategic Implementation as a Part of Strategic Management. Procedia - Social and Behavioral Sciences, 110, 861–870. https://doi.org/10.1016/j.sbspro.2013.12.931
Mora Cortez, R., Højbjerg Clarke, A., & Freytag, P. V. (2021). B2B market segmentation: A systematic review and research agenda. Journal of Business Research, 126, 415–428. https://doi.org/10.1016/j.jbusres.2020.12.070
Naveed, Q. N., Islam, S., Qureshi, M. R. N. M., Aseere, A. M., Rasheed, M. A. A., & Fatima, S. (2021). Evaluating and Ranking of Critical Success Factors of Cloud Enterprise Resource Planning Adoption Using MCDM Approach. IEEE Access, 9, 156880–156893. https://doi.org/10.1109/ACCESS.2021.3129523
Papulova, Z., & Gazova, A. (2016). Role of Strategic Analysis in Strategic Decision-Making. Procedia Economics and Finance, 39, 571–579. https://doi.org/10.1016/S2212-5671(16)30301-X
Pariasa, I. I., Anam, M. A. S., & Hardana, A. E. (2021). Sorbitol production optimization in B2B industry with six sigma approach. IOP Conference Series: Earth and Environmental Science, 733(1), 12056. https://doi.org/10.1088/1755-1315/733/1/012056
Puyt, R. W., Lie, F. B., & Wilderom, C. P. M. (2023). The origins of SWOT analysis. Long Range Planning, 56(3), 102304. https://doi.org/10.1016/j.lrp.2023.102304
Ruivo, P., Johansson, B., Sarker, S., & Oliveira, T. (2020). The relationship between ERP capabilities, use, and value. Computers in Industry, 117, 103209. https://doi.org/10.1016/j.compind.2020.103209
Saaty, T. L. (1994). How to Make a Decision: The Analytic Hierarchy Process. Interfaces, 24(6), 19–43. https://doi.org/10.1287/inte.24.6.19
Statista.com. (2018). Enterprise software spending in Indonesia in 2014 and 2019. Retrieved from https://www.statista.com/statistics/824377/indonesia-enterprise-software-spend/
Tsai, W.-H., Lee, P.-L., Shen, Y.-S., & Lin, H.-L. (2012). A comprehensive study of the relationship between enterprise resource planning selection criteria and enterprise resource planning system success. Information & Management, 49(1), 36–46. https://doi.org/10.1016/j.im.2011.09.007
Turcksin, L., Bernardini, A., & Macharis, C. (2011). A combined AHP-PROMETHEE approach for selecting the most appropriate policy scenario to stimulate a clean vehicle fleet. Procedia - Social and Behavioral Sciences, 20, 954–965. https://doi.org/10.1016/j.sbspro.2011.08.104
Uddin, M. R., Al Noman, A., Tasnim, F., Nafisa, N., & Hossain, S. (2021). A Hybrid MCDM Approach based on AHP, and TOPSIS to select an ERP system in Bangladesh. 2021 International Conference on Information and Communication Technology for Sustainable Development (ICICT4SD), 161–165. https://doi.org/10.1109/ICICT4SD50815.2021.9396932
Yang, T., & Hung, C.-C. (2007). Multiple-attribute decision making methods for plant layout design problem. Robotics and Computer-Integrated Manufacturing, 23(1), 126–137. https://doi.org/10.1016/j.rcim.2005.12.002
Yaseen, M., Mustapha, A., & Ibrahim, N. (2020). Prioritization of Software Functional Requirements from Developers Perspective. International Journal of Advanced Computer Science and Applications, 11(9). https://doi.org/10.14569/IJACSA.2020.0110925
DOI: http://dx.doi.org/10.58836/jpma.v15i1.21173
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Jurnal Penelitian Medan Agama
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.