IBIMA Publishing Journal of Enterprise Resource Planning Studies http://www.ibimapublishing.com/journals/JERPS/jerps.html Vol. 2012 (2012), Article ID 122627, 15 pages DOI: 10.5171/2012.122627 Copyright © 2012 Zainal Arifin Hasibuan and Gede Rasben Dantes. This is an open access article distributed under the Creative Commons Attribution License unported 3.0, which permits unrestricted use, distribution, and reproduction in any medium, provided that original work is properly cited. Contact Author: Zainal Arifin Hasibuan E-mail: zhasibua@cs.ui.ac.id Priority of Key Success Factors (KSFS) on Enterprise Resource Planning (ERP) System Implementation Life Cycle Zainal Arifin Hasibuan 1 and Gede Rasben Dantes 2 1 Faculty of Computer Science, University of Indonesia, Depok, Jawa Barat, Indonesia 2 Department of Information Management, Ganesha University, Singaraja, Bali, Indonesia ______________________________________________________________________________________________________________ Abstract This study presents the priority of key success factors (KSFs) on Enterprise Resource Planning (ERP) system implementation life cycle. There are twenty KSFs considered in this study. They were chosen from literature review. The KSFs are classified into five stages of ERP implementation life cycle; namely: project preparation, technology selection, project formulation, implementation/development and deployment. To address the study objectives, a survey questionnaire was considered the most appropriate research method. It was sent to 74 companies that have been implementing ERP system for at least one year. The respondents are staff at management level, IT staff and users involved in the development and use of the ERP system. The survey received 248 responses from 740 quesitionnaires that were sent to the companies. To find the priority of KSFs on ERP implementation life cycle, a quantitative analysis is applied to identify the weighting of KSFs toward ERP implementation success. The success of ERP implementation can be measured through five indicators; namely: system quality, information quality, service quality, tactical impact and strategical impact. Based on the weighting of KSFs on each stage of ERP implementation life cycle, it is found that the communication is most critical KSF on project preparation stage (ρ = 0.664). While the strong ERP product (package selection) is most critical KSF on technology selection stage (ρ = 0.554). The change management is most critical KSF on project formulation stage (ρ = 0.406), and on implementation/development stage, user training is the most critical KSF (ρ = 0.422). This study is expected to improve knowledge in ERP implementation, especially the role of KSF on each stage of ERP implementation life cycle. Keywords: Priority of KSFs, ERP Implementation Success, ERP Implementation Life Cycle, Key Success Factors (KSFs) ______________________________________________________________________________________________________________ Introduction Enterprise Resource Planning (ERP) system is an integrated information system that is used to support business processes and resource management within an organization. These systems integrate between one business unit with other business units. With the implementation of this system in an organization to support the company's operations, it is expected to provide optimum benefit for the company. This is especially needed by the various industrial sectors in this era of globalization. So, the company can compete with competitors or even create a competitive advantage. In addition, ERP selection is also done with various strategic reasons both tangible and intangible. ERP software has grown rapidly the last 10 years. According to AMR Research, ERP system sales increased dramatically in 2004 reached 23.6 billion dollars. Market