Strategic Evaluation of SAP System Upgrades Using TOPSIS Method: A Comparative Analysis

This research examines SAP system optimization strategies at Levi Strauss & Co. (LS&Co.), a global leader in the apparel industry, using the TOPSIS (Technique for Prioritizing Order by Similarity to Ideal Solution) method. LS&Co. has deployed SAP solutions to improve operational efficiency and streamline its business processes as part of its digital transformation efforts. The study aims to identify the most appropriate optimization approach by evaluating key factors including downtime, cost, system reliability, performance gains, implementation time, and post-upgrade support. The analysis considers four optimization strategies: full system optimization, incremental updates, cloud migration, and hybrid optimization. Using the TOPSIS method, the strategies are ranked based on a weighted normalized decision matrix. The results indicate that full system optimization (A1) ranks highest with a Ci value of 0.5934 due to its balanced performance on key metrics such as reliability, efficiency, and strong post-upgrade support. Hybrid upgrade (A4) emerges as the second-best option, striking a balance between cost-effectiveness and operational benefits. Incremental updates (A2) and cloud migration (A3) rank third and fourth, respectively, because they provide specific benefits but do not fully address LS&Co.’s broader needs. This study highlights the importance of aligning upgrade strategies with organizational goals, focusing on both immediate operational needs and long-term strategic consequences. The findings demonstrate the effectiveness of the TOPSIS method as a quantitative decision-making framework for evaluating complex enterprise resource planning (ERP) upgrades. Adopting the recommended strategy allows LS&Co. to reduce disruption, control costs, improve the reliability and performance of its SAP systems, and further advance its digital transformation efforts. This research provides valuable insights into the discussion of ERP system upgrades and strategic decision-making in the apparel and retail industries.