IDENTIFICATION OF USER ACCEPTANCE FACTORS OF THE SAP SYSTEM IN INDONESIA’S MINING INDUSTRY Sasmito Handoko 1 , Dana Indra Sensuse 2 1. Program Studi Magister Teknologi Informasi, Fakultas Ilmu Komputer, Universitas Indonesia, Jl. Salemba Raya No.4, Jakarta Pusat, Indonesia 2. Program Studi Magister Teknologi Informasi, Fakultas Ilmu Komputer, Universitas Indonesia, Jl. Salemba Raya No.4, Jakarta Pusat, Indonesia E-mail: 1. sasmito.handoko@gmail.com 2. dana@cs.ui.ac.id Abstract SAP is the most popular ERP based application system. The benefit of an ERP based systems are integrated, complete feature and adopted from the best practices. Company is required to invest a substantial amount to implement SAP system, but the implementation may improve efficiency, perform controlling function of company’s activity and useful to produce analytical report that will be used in decision making process. User acceptance is noted as an important factor for the implementation of a new system. Lack of user acceptance becomes one factor which contributing to the failure of an ERP implementation project. This research aim to identify factors that influence user acceptance of the SAP system. By knowing these factors, organizations can make interventions in an efforts to improve the use of the system and improve system implementation success. TAM (Technology Acceptance Model) is used as endogenous variable, combined with exogenous variable obtained from ASAP Methodology and organization condition. ASAP Methodology itself considered as the best practice used in the SAP implementation process. A total 92 survey data were collected from the SAP system users and analyzed using SEM-PLS method. The result of this research found the factors that influence user acceptance are: business process adoption, training, social influence, ERP support, shared belief in benefit, perceived ease of use, and perceived usefulness. It is proven empirically that business process adoption affects perceived usefulness, meanwhile training and social influence affects the shared believe in benefit. Furthermore, ERP support is affecting the perceived ease of use. Those factors should become the main attention in an effort to improve the user acceptance of the SAP system. Keyword: SAP, ERP, TAM, ASAP Methodology, PLS-SEM. 1. Introduction ERP (Enterprise Resource Planning) systems are focused on the integration factor of the processes that run within an organization [1]. Through data integration and business functions, ERP-based systems can help companies reduce operating costs and improve business process management [2] [3]. However, the complexity of ERP system both in the implementation process and adoption in operation, often becomes a challenge for organizations to be able to obtain maximum benefits from the use of ERP-based system [4]. According to Panorama Consulting [5] 60% of ERP system users only get half the benefits of ERP systems [6]. While in 2005 found at least 50% of ERP implementations fail to meet the needs of the organization [7] [3]. One of the factors causing the failure of the ERP system in addressing the needs of the organization is the end-user resistance [2] [3]. According to Wang and Liu [8], the user acceptance of an information system and the intentions to use the system has a strong influence in the successful implementation of the system. Otherwise, lack of user acceptance becomes one factor contributing to the failure of an ERP implementation project [9] [10] [11]. The usage of ERP based system is not only mandatory, but also voluntary [9]. The mandatory use of ERP systems is for using basic features and functions needed to completing the daily activities, while the use of other features and functions that are not directly related in completing daily activities consider as voluntary. This conditions may resulted in the organization unable to gain optimum benefit from the use of the system, since the optimum benefit from the system requires both basic and additional features usage effectively [9]. Several studies on user acceptance of the ERP system focuses on the identification of factors of user acceptance to intervene and avoid the failure of the ERP system implementation and improve the effectiveness the use of the system, among others, the study of Amoako-Gyampah & Salam [9], Chen and Zeng [12], Nah, Tan, & Teh [13], Shih and Huang [10] and Sternad and Bobek [14]. From these studies found that one of the reasons for the failure of ERP implementation is the unwillingness of users to adopt and use the system [13] [14]. An understanding of the factors that influence user acceptance of ERP systems is required in pursuing the successful use of ERP systems [13] [15]. From those description one important message for organization to derive the