A Hybrid MCDM Approach for Solving the ERP System Selection Problem with Application to Steel Industry

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.

Author(s):  
Guiwu Wei ◽  
Jie Wang ◽  
Hui Gao ◽  
Cun Wei

In this paper, the multiple attribute decision making (MADM) problems are investigated with picture 2-tuple linguistic information. Then, based on Hamy mean (HM) operator and dual Hamy mean (DHM) operator, the power average and power geometric operations are utilized to develop some picture 2-tuple linguistic power Hamy mean aggregation operators: picture 2-tuple linguistic power weighted Hamy mean (P2TLPWHM) operator, picture 2-tuple linguistic power weighted dual Hamy mean (P2TLPWDHM) operator, picture 2-tuple linguistic power ordered weighted Hamy mean (P2TLPOWHM) operator, picture 2-tuple linguistic power ordered weighted dual Hamy mean (P2TLPOWDHM) operator, picture 2-tuple linguistic power hybrid Hamy mean (P2TLPHHM) operator and picture 2-tuple linguistic power hybrid dual Hamy mean (P2TLPHDHM) operator. The prominent characteristic of these proposed operators are studied. Then, these operators are utilized to develop some approaches to solve the picture 2-tuple linguistic multiple attribute decision making problems. Finally, the proposed method is demonstrated through a practical example for enterprise resource planning (ERP) system selection of how the proposed methods help us and is effective in MADM problems.


2021 ◽  
Vol 11 (15) ◽  
pp. 6792
Author(s):  
Alessio Faccia ◽  
Pythagoras Petratos

Accounting information systems (AISs), the core module of any enterprise resource planning (ERP) system, are usually designed as centralised systems. Nowadays, the continuous development and applications of blockchain, or more broadly—distributed ledger technology (DLT), can change the architecture, overcome and improve some limitations of centralised systems, most notably security and privacy. An increasing number of authors are suggesting the application of blockchain technologies in management, accounting and ERPs. This paper aims to examine the emerging literature on this field, and an immediate result is that blockchain applications can have significant benefits. The paper’s innovative contribution and considerable objective are to examine if blockchain can be successfully integrated with AIS and ERPs. We find that blockchain can facilitate integration at multiple levels and better serve various purposes as auditing compliance. To demonstrate that, we analyse e-procurement systems and operations using case study research methodology. The findings suggest that DLT, decentralised finance (DeFI), and financial technology (FinTech) applications can facilitate integrating AISs and ERP systems and yield significant benefits for efficiency, productivity and security.


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):  
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.


Author(s):  
Joseph R. Muscatello ◽  
Diane H. Parente

Enterprise resource planning (ERP) systems, if implemented correctly, have shown that a firm can gain strategic and tactical advantages over their competition who do not implement such systems. However, with failure rates estimated to be as high as 50% of all ERP implementations, companies can be negatively impacted by a poorly performing ERP system. The research on ERP has focused on events leading to the selection, evaluation, and implementation of the ERP system. The intent of this updated research effort is to capture new theories that can help practitioners successfully manage ERP systems by performing a post-ERP implementation examination of eight corporations and a pertinent research review. This chapter is based on a qualitative research design involving case-study methodology. The propositions derived from the case study form a broad set of considerations that influence the success of an ERP system.


Author(s):  
Rosio Alvarez

This research examines the implementation process of an enterprise resource planning (ERP) system and shows that implementation cannot be viewed solely in instrumental terms–that is, organizations do not simply select systems based on information requirements so that proper “fit” can be achieved. Instead, this research suggests that the activities of selecting and implementing a new ERP become the medium for (re-)constructing or (re-)constituting the organization’s values. Theorists have described such activities as a “mythmaking” process. A case study of an implementation at a large nonprofit organization is presented to demonstrate how myth-making served to construct an ERP system as an “integrated” system and at the same time served to elaborate existing organizational values. The myth functioned as a vehicle of consensual organizational reality, serving to align the acquisition of an ERP system with the organizational values, thereby garnering widespread support for a complex, expensive and relatively unknown technology.


Author(s):  
Christoph Beckers ◽  
Oliver Marz ◽  
Lutz M. Kolbe

Given the increased stakeholder focus on sustainability, companies are facing the challenge of systematically collecting and processing sustainability information. Identifying sustainability indicators will become imperative for small and medium-sized enterprises (SME), especially in the extremely segmented and highly specialized food industry – entailing opportunities, but also costs and risks. This article is a management approach and a basis for discussing the classification of sustainability reporting systems in existing Information Technology (IT) infrastructures from an economical point of view. Supported by a case study from the meat industry, the authors discuss to what extent sustainability information is reflected by an existing Enterprise Resource Planning (ERP) System, or which investments would be required for companies to facilitate the communication of sustainability data. Additionally and as a result, the article gives a schematic explanation how process changes can be evaluated economically by capturing and processing sustainability information, and thus how to decide in favor of or against a certain level of IT-based environmental information processing functionality.


2019 ◽  
Vol 11 (1) ◽  
pp. 35-65 ◽  
Author(s):  
Guiwu Wei

In this article, the authors investigate the multiple attribute decision making problems with picture 2-tuple linguistic information. The utilized power average and power geometric operations used to develop some picture 2-tuple linguistic power aggregation operators: picture 2-tuple linguistic power weighted average (P2TLPWA) operator, picture 2-tuple linguistic power weighted geometric (P2TLPWG) operator, picture 2-tuple linguistic power ordered weighted average (P2TLPOWA) operator, picture 2-tuple linguistic power ordered weighted geometric (P2TLPOWG) operator, picture 2-tuple linguistic power hybrid average (P2TLPHA) operator and picture 2-tuple linguistic power hybrid geometric (P2TLPHG) operator. The prominent characteristic of these proposed operators is studied. This article has utilized these operators to develop some approaches to solve the picture 2-tuple linguistic multiple attribute decision making problems. Finally, a practical example for enterprise resource planning (ERP) system selection is given to verify the developed approach and to demonstrate its practicality and effectiveness.


2014 ◽  
Vol 5 (3) ◽  
pp. 14-22 ◽  
Author(s):  
Sławomir Kłos ◽  
Peter Trebiina

Abstract This paper proposes the application of the Analytic Hierarchy Process method to support decision making regarding the selection of an Enterprise Resource Planning system in a manufacturing company. The main assumption of the work is that the management of the selection of an ERP system should consider that the most important selection criteria are concerned with the functionality of the ERP system. Besides this, the aspects of total cost of ownership, technical support and implementation time or vendor experience are taken into consideration to guarantee a successful ERP implementation. The proposed procedure of an ERP system selection is dedicated for small and medium manufacturing enterprises. A structure of attributes for the AHP method is proposed on the basis of an analysis and identification of critical success factors. Different kinds of production (make-to-stock, make-to-order and engineer-to-order are taken into consideration). Illustrative examples are also given.


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