Abstract
There are many benefits offered by integrated enterprise computer systems. There are a growing number of options available to obtain such management information system support. A major problem when selecting Enterprise Information Systems, in special ERP systems, is how to deal with the great diversity of options as well as the number of criteria used to evaluate each alternative. There is an implicit tradeoff between cost and system functionality. Total cost of ownership (TCO) is in itself very difficult to calculate accurately, and needs to be considered in light of other criteria. Published criteria for ERP selection decisions in a variety of contexts are reviewed. We also present a method which integrates a multicriteria rating strategy based on the Simple MultiAttribute Rating Theory (SMART) with the meta-method Prepare-Identify-Rate-Compare-Select (PIRCS) framework for driving the selection process. The method is demonstrated with a general ERP selection decision, but is meant as a framework that can be applied with whatever criteria decision makers deem important in the context of their specific decision.
Chapter PDF
Similar content being viewed by others
References
Olson, D.L., Kesharwani, S.: Enterprise Information Systems: Contemporary Trends and Issues. World Scientific, Singapore (2010)
Poba-Nzaou, P., Raymond, L., Fabi, B.: Adoption and Risk of ERP Systems in Manufacturing SMEs: A Positivist Case Study. Business Process Management Journal 14(4), 530–550 (2008)
Kirytopoulos, K., Voulgaridou, D., Panopoulos, D., Leopoulosm, V.: Project Termination Analysis in SMEs: Making the Right Call. International Journal of Management & Decision Making 10(1/2), 69–90 (2009)
Wei, C.-C., Chien, C.-F., Wang, M.-J.: An AHP-Based Approach to ERP System Selection. International Journal of Production Economics 96, 47–62 (2005)
De Carvalho, R.A.: Free/Open Source Enterprise Resources Planning. In: Jatinder Gupta, N.D., Rashid, M.A., Sharma, S.K. (eds.) Handbook of Research on Enterprise Systems, pp. 32–44. Information Science Reference, Hershey (2009)
Baki, B., Çaki, K.: Determining the ERP Package-Selecting Criteria: The Case of Turkish Manufacturing Companies. Business Process Management Journal 11(1), 75–86 (2005)
Johansson, B., de Carvalho, R.A.: Management of Requirements in ERP Development: A Comparison Between Proprietary and Open Source ERP. In: ACM Symposium of Applied Computing, Honolulu, Hawaii, March 8-12, pp. 1605–1609 (2009)
Kabassi, K., Virvou, V.: A Knowledge-Based Software Life-Cycle Framework for the Incorporation of Multicriteria Analysis in Intelligent User Interfaces. IEEE Transactions on Knowledge and Data Engineering 18(9), 1265–1277 (2006)
De Carvalho, R.A.: Issues on Evaluating Free/Open Source ERP Systems. In: Tjoa, A.M., Xu, L., Chaudhry, S. (eds.) International Federation for Information Processing. Research and Practical Issues of Enterprise Information Systems, vol. 205, pp. 667–675. Springer, Boston (2006)
Edwards, W.: Social Utilities. The Engineering Economist 6, 119–129 (1971)
Hecht, B.: Choose the Right ERP Software. Datamation 43(3), 56–58 (1997)
Brewer, G.: On the Road to Successful ERP. Instrumentation & Control Systems 73(5), 49–58 (2000)
Rao, S.S.: Enterprise Resource Planning: Business Needs and Technologies. Industrial Management & Data System 100(2), 81–88 (2000)
Verville, J., Hallingten, A.: An Investigation of the Decision Process for Selecting an ERP Software: The Case of ESC. Management Decision 40(3), 206–216 (2002)
Kumar, V., Maheshwari, B., Kumar, U.: An Investigation of Critical Management Issues in ERP Implementation: Empirical Evidence from Canadian Organizations. Technovation 23, 793–807 (2003)
Reuther, D.: Critical Factors for Enterprise Resources Planning System Selection and Implementation Projects within Small to Medium Enterprises. In: International Engineering Management Conference, pp. 851–855 (2004)
Rittammanart, N., Wongyued, W., Dailey, M.N.: ERP Application Development Frameworks: Case Study and Evaluation. In: Proceedings of ECTI-CON, pp. 173–176 (2008)
Baharum, Z., Ngadiman, M.S., Haron, H.: Critical Factors to Ensure the Success of OS-ERP Implementation Based on Technical Requirement Point of View. In: Third Asia International Conference on Modelling & Simulation, pp. 419–424 (2009)
Benroider, E., Koch, S.: ERP Selection Process in Midsize and Large Organizations. Business Process Management Journal 7(3), 251–257 (2001)
Ekanayaka, Y., Currie, W.L., Selsikas, P.: Evaluating Application Service Providers. Benchmarking: An International Journal 10(4), 343–354 (2003)
Kahraman, C., Beskese, A., Kaya, I.: Selection Among ERP Outsourcing Alternatives Using a Fuzzy Multi-Criteria Decision Making Methodology. International Journal of Production Research 48(2), 547–566 (2009)
Keil, M., Tiwana, A.: Relative Importance of Evaluation Criteria for Enterprise Systems: A Conjoint Study. Information Systems Journal 16, 237–262 (2006)
Saaty, T.L.: A Scaling Method for Priorities in Hierarchical Structures. Journal of Mathematical Psychology 15, 234–281 (1977)
Ahn, B.S., Choi, S.H.: ERP system selection using a simulation-based AHP approach: A case of Korean homeshopping company. Journal of the Operational Research Society 59(3), 322–330 (2008)
Salmeron, J.L., Lopez, C.: A multicriteria approach for risks assessment in ERP maintenance. Journal of Systems & Software 83(10), 1941–1953 (2010)
Onut, S., Efendigil, T.: A theoretical model design for ERP software selection process under the constraints of cost and quality: A fuzzy approach. Journal of Intellilgent & Fuzzy Systems 21(6), 365–378 (2010)
Saaty, T.L.: The Analytic Network Process: Decision Making with Dependence and Feedback. RWS Publications, Pittsburgh (1996)
Ayağ, Z., Özdemir, R.G.: An intelligent approach to ERP software selection through fuzzy ANP. International Journal of Production Research 45(10), 2169–2194 (2007)
Kirytopooulos, K., Voulgaridou, D., Panopoulos, D., Leopoulos, V.: Project termination analysis in SMEs: Making the right call. International Journal of Management & Decision Making 10(1/2), 69–90 (2009)
Olson, D.L., Wu, D.D.: Multiple criteria analysis for evaluation of information system risk. Asia-Pacific Journal of Operational Research 28(11), 25–39 (2011)
Ünal, C., Güner, M.G.: Selection of ERP Suppliers Using AHP Tools in the Clothing Industry. International Journal of Clothing Science and Technology 21(4), 239–251 (2009)
Perçin, S.: Using the ANP Approach in Selecting and Benchmarking ERP Systems. Benchmarking: An International Journal 15(5), 630–649 (2008)
Olson, D.L.: Evaluation of ERP outsourcing. Computers & Operations Research 34(12), 3715–3724 (2007)
Olson, D.L.: Decision Aids for Selection Problems. Springer, New York (1996)
Miller, G.: The Magical Number Seven Plus or Minus Two: Some Limits on Our Capacity for Processing Information. Psychological Review 3(2), 81–97 (1956)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2012 IFIP International Federation for Information Processing
About this paper
Cite this paper
Olson, D.L., Johansson, B., de Carvalho, R.A. (2012). A Combined Method for Evaluating Criteria When Selecting ERP Systems. In: Møller, C., Chaudhry, S. (eds) Re-conceptualizing Enterprise Information Systems. Lecture Notes in Business Information Processing, vol 105. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-28827-2_5
Download citation
DOI: https://doi.org/10.1007/978-3-642-28827-2_5
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-28826-5
Online ISBN: 978-3-642-28827-2
eBook Packages: Computer ScienceComputer Science (R0)