Dorojatun Prihandono, Angga Pandu Wijaya, Kris Brantas Abiprayu, Widya Prananta, Syam Widia
The research aims to analyze risk management in the adoption of Enterprise Resource Planning (ERP). ERP currently widely used, however limited research focus on risk management adoption regarding technological and information system. Digital transformation encourages SMEs to adopt information technology to streamline business processes, especially ERP. Through a comprehensive investigation involving 85 SME owners, the study focuses on ERP risk management. The analysis is conducted by identifying, mapping, and assessing severity. Additionally, data is analyzed using a neural network to explain the satisfaction level of ERP adoption. The research identifies several key risk factors, including vendor stability, data security, system downtime, and inadequate support. Based on research result, risk management underscores the need for robust encryption protocols, access controls, and regular security audits to mitigate the risks of data breaches, unauthorized access, and the compromise of critical business data. The research is reliable in illustrating ERP adoption risks, with a 98.3% correct prediction rate. The novelty of this research lies in its identification and mapping of risk factors in ERP adoption for SMEs, serving as an alternative reference for determining information technology improvements. The research suggests prioritizing thorough due diligence when selecting an ERP vendor and establishing clear and comprehensive Service Level Agreements. ©2024 The authors.
Department of Management, Faculty of Economics and Business, Universitas Negeri Semarang, Semarang, 50229, Indonesia
