scholarly journals ERP SELECTION CRITERIA: THEORETICAL AND PRACTICAL VIEWS

Ekonomika ◽  
2012 ◽  
Vol 91 (2) ◽  
pp. 97-116 ◽  
Author(s):  
Donatas Ratkevičius ◽  
Česlovas Ratkevičius ◽  
Rimvydas Skyrius

This article deals with the problems of Enterprise Resource Planning (ERP) system selection as the initial and vital phase of ERP system implementation.Firstly, the paper presents an analysis of different classifications of the fundamental criteria for the ERP system selection process, published in scholar sources, and defines two main groups – software-related, and implementation-related ERP selection criteria. Secondly, combining theoretical and practical approaches, the most significant ERP system selection criteria of both groups are identified and reviewed by analyzing and interpreting their definitions and differences. The study is complemented by adding practical/statistical findings produced by different consultancies.The paper concludes that there is no standard classification of ERP selection criteria. They are classified mostly on the basis of scientists’ research interests.The significance of ERP system functionality as the principal software-related ERP selection criterion is emphasized. Eleven other criteria were defined as important to consider, such as the total costs of the ERP implementation project, vendor reputation, ERP reliability, ease of integration with other systems, technology advance, scalability, upgrading ability, customization / parameterization possibilities; ease of use; flexibility and modularity.The importance of all-round knowledge for a successful ERP implementation is emphasized, including ERP software functionality, project and change management, business processes, organization of training etc. All these areas are closely connected with implementation-related ERP selection factors: organisational fit, end-user readiness, training, system support quality, and the overall ERP implementation success which is predefined by the complexity of business environment as well as the level of business transformation, defined by technological changes.Finally, it is stated that for creating a decision support system which would automate the ERP selection process, the quantitative analysis of ERP selection criteria would be required.

Author(s):  
Jessy Nair ◽  
D. Bhanusree Reddy ◽  
Anand A. Samuel

Organizations require to enhance their firm level resources to compete in turbulent business environment. Strategic application systems, such as an Enterprise Resource Planning (ERP) System is one such resource technology that centralizes the database of the organization to enable a seamless view of the organization. However, implementation of ERP systems in organizations has not been a success story for many. ERP systems implementation brings about large scale organizational change and hence it becomes essential for stakeholders to have a reference framework for planning for various dimensions of the organization. Hence this chapter applies a General Morphological Analysis(GMA) to identify the most suitable theory to analyse ERP implementation. Socio technical theory with Leavitt's diamond model was analysed as most appropriate since they are based on the of premises organizational change at firm level. Socio technical organizational change model will enable stakeholders to analyse resources required for core dimensions of the organization for ERP implementation.


Author(s):  
Adekunle Okunoye ◽  
Mark Frolick ◽  
Elaine Crable

Enterprise Resource Planning (ERP) systems long have been known as systems that bring integration to numerous business activities within complex organizations. However, in today’s contemporary organizations, ERP systems are becoming a standard information system, irrespective of size and nature of the business. This case focuses on the implementation of an ERP system in higher education. The case covers the key stages of implementation. Particular emphasis is placed on the selection of the ERP system and the organizational dynamics involved. The implementation of the first two modules and the views of users are discussed. The depth of the case can enable managers to understand the complexity of an ERP system selection and the organizational issues involved. The analysis of the case sheds light on the activities involved in ERP projects and what to expect during the implementation stage.


2004 ◽  
Vol 35 (1) ◽  
pp. 45-52 ◽  
Author(s):  
D. Das Neves ◽  
D. Fenn ◽  
P. Sulcas

In order to determine the process organisations go through in selecting an Enterprise Resource Planning (ERP) system, a field study was undertaken on eleven cases. Based on the findings a best practice selection process is proposed.A benchmark selection criteria checklist was drawn up as part of this investigation and each of the criteria listed should be considered prior to final selection.Other issues discussed in this article include the original motivation and justification for ERP purchase, change management, customisation of source code and the roles of the selection committee, consultants and vendors.


Author(s):  
Jessy Nair ◽  
D. Bhanusree Reddy ◽  
Anand A. Samuel

Organizations must enhance their firm-level resources to compete in the turbulent business environment. Strategic application systems, such as an enterprise resource planning (ERP) system, are one such resource technology that centralizes the database of the organization to enable a seamless view of the organization. However, implementation of ERP systems in organizations has not been a success story for many. ERP systems implementation brings about large-scale organizational change, and hence, it becomes essential for stakeholders to have a reference framework for planning for various dimensions of the organization. Hence, this chapter applies a general morphological analysis (GMA) to identify the most suitable theory to analyze ERP implementation. Socio-technical theory with Leavitt's diamond model were analyzed as most appropriate since they are based on the premises of organizational change at firm level. The socio-technical organizational change model will enable stakeholders to analyze resources required for core dimensions of the organization for ERP implementation.


2012 ◽  
Vol 8 (3) ◽  
pp. 54-73 ◽  
Author(s):  
Ahmad Jafarnejad ◽  
Manoucher Ansari ◽  
Hossein Rahmany Youshanlouei ◽  
Mohammad Mood

Selecting a proper system of Enterprise Resource Planning (ERP) is a major challenge for enterprise managers. Heavy expenses of incorrect decisions in selection of ERP systems have made academics and managers consider this phase as highly important. Several research studies proposed different approaches to selecting the ERP and many case studies of organizational experiences have been published. However, there has been less regard for simultaneous use of the findings of academic studies and judgments of industrial experts or organization mangers for making the most appropriate choice. This study proposes a combined multiple-criteria decision-making (MCDM) approach through which both previous studies and judgments of industrial experts or organization managers would be integrated in order to select the proper ERP system. Having studied the literature comprehensively and conducted interviews with experts and managers, this approach will determine the most important criteria in ERP selection using Shannon entropy technique. Then, based on the judgments obtained from experts and using DEMATEL technique, these criteria will be classified into the two groups of “Cause” and “Effect” and the most appropriate choice will be selected using Fuzzy AHP technique. Finally, a case study is conducted to demonstrate and prove the applicability of the proposed approach.


2013 ◽  
Vol 8 (1) ◽  
pp. 8
Author(s):  
Muhammad Hafizhuddin Hilman ◽  
Farisya Setiadi ◽  
Ika Sarika ◽  
Jarot Budiasto ◽  
Rakhmat Alfian

Enterprise Resource Planning (ERP) system is a concept of enterprise system that describe the integration of the whole process in the organization. Study in this field mostly about external development paradigm on information system development. So, issue in ERP is all about how to adopt it in the organization, not about the application development. This paper reviews two methodology on ERP system implementation, one is vendor perspective methodology and new generic perspective methodology. Comparation of both methodology is done in this study by using Roger Sessions’ metric. Result is the vendor perspective slightly superior than the new generic perspective methodology.


Author(s):  
Magdy Abdel-Kader ◽  
Thu Phuong Nguyen

Enterprise Resource Planning (ERP) systems have been recognized as complex and costly, which limited their implementation in large organizations. However, an increasing number of small organizations have recently gained interest in this system. This paper investigates the implementation process of ERP in a small firm. The investigation focused on two perspectives of ERP implementation: successes achieved and problems encountered. Despite many problems encountered in the firm, the ERP system still exists. This gives evidence that small organizations are more flexible and motivated to adapt to change and implement an ERP system. Most problems were encountered at early stages of implementation, which can be minimized if deliberate decision making of ERP implementation and proper selection processes were in place. Further, ERP is a good solution for small organizations if they are able to build a relevant in-house system.


Author(s):  
Xi Chen ◽  
Rapeepat Techakittiroj

Enterprise Resource Planning (ERP) system in companies can be implemented to Multi National Corporation (MNC), Larger Enterprise, and Small & Medium-sized Enterprises (SMEs). In China, 99% of all companies can be categorized as SMEs. With a decade of high-speed economy development after entering the 21st century, traditional Chinese SMEs want to find a new management model to improve work efficiency and increase business opportunities. This study finds the factors affecting the diffusion and successful implementation of ERP in Chinese Nanjing manufacturing SMEs. It will lead to the conclusion that ERP investment and implementation, which could be used as project guideline by the management of SMEs or companies that adopt ERP in intend to implement them. The objective is to provide Nanjing’s SMEs implementing ERP with knowledge about ERP implementation factors.


Author(s):  
Kimberly Furumo

This chapter provides a case study of a failed enterprise resource planning (ERP) implementation at a public university. Public universities, like other governmental agencies, may have more dif?culty implementing information technology (IT) because of limited resources, increased organizational bureaucracy, and extensive statutory reporting requirements. This chapter begins by identifying what an ERP system is, the dif?culties of implementing ERP systems, and the added dif?culties related to implementing technology in governmental organizations. In this case study analysis, upper managers, IT staff, and functional department end users were asked to identify why the project failed. Several lessons were learned including the importance of allocating adequate ?nancial resources to IT projects and managing the change process. As organizations move from the centralized legacy system environment which was prevalent in the last half of the 20th century, to the new distributed ERP environment, roles and responsibilities are changing. Readers are provided with practical suggestions that will help improve IT implementation success in governmental agencies.


2011 ◽  
Vol 2 (4) ◽  
pp. 1-19
Author(s):  
Abdelilah Khaled ◽  
Mohammed Abdou Janati Idrissi

Historically, Enterprise Resource Planning (ERP) systems were initially destined to large companies in order to standardize and streamline their key business processes. Recently, they have been increasingly adopted by Small and Medium Enterprises (SMEs). However, making strategic tradeoffs among the various marketplace solutions is a troublesome balance task for SMEs without the rescue of systematic multicriteria decision approaches. This paper addresses the question of how to choose an ERP solution that best suits a given SME. It serves twofold objectives; firstly it defines a set of selection criteria related to SMEs’ context. Secondly, it presents a selection methodology based on the construction of an induced decision model through capturing the decision maker’s preferences. The key contribution of this paper is the introduction of a new iterative learning based approach destined to make enlightened decisions through the consideration of interdependencies among the adopted selection criteria thanks to the Choquet Integral.


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