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Article
Publication date: 8 March 2021

Mustafa Said Yurtyapan and Erdal Aydemir

Enterprise Resource Planning (ERP) software which is a knowledge-based design on the interconnective communication of business units and information share, ensures that business…

Abstract

Purpose

Enterprise Resource Planning (ERP) software which is a knowledge-based design on the interconnective communication of business units and information share, ensures that business processes such as finance, production, purchasing, sales, logistics and human resources, are integrated and gathered under one roof. This integrated system allows the company to make fast and accurate decisions and increases its competitiveness. Therefore, for an enterprise, choosing the suitable ERP software is extremely important. The aim of this study is to present new research on the ERP software selection process by clarifying the uncertainties and find suitable software in a computational way.

Design/methodology/approach

ERP selection problem design includes uncertainties on the expert opinions and the criteria values using intuitionistic fuzzy set theory and interval grey-numbers to MACBETH multi criteria decision making method. In this paper, a new interval grey MACBETH method approach is proposed, and the degree of greyness approach is used for clarifying the uncertainties. Using this new approach in which grey numbers are used, it is aimed to observe the changes in the importance of the alternatives. Moreover, the intuitionistic fuzzy set method is applied by considering the importance of expert opinions separately.

Findings

The proposed method is based on quantitative decision making derived from qualitative judgments. The results given under uncertain conditions are compared with the results obtained under crisp conditions of the same methods. With the qualitative levels of experts reflected in the decision process, it is clearly seen that ERP software selection problem area has more effective alternative decision solutions to the uncertain environment, and decision makers should not undervalue the unsteadiness of criteria during ERP software selection process.

Originality/value

This study contributes to the relevant literature by (1) utilizing the MACBETH method in the selection of the ERP software by optimization, and (2) validating the importance of expert opinions with uncertainties on a proper ERP software selection procedure. So, the findings of this study can help the decision-makers to evaluate the ERP selection in uncertain conditions.

Details

Grey Systems: Theory and Application, vol. 12 no. 1
Type: Research Article
ISSN: 2043-9377

Keywords

Article
Publication date: 1 February 2005

Birdoğan Baki and Kemal Çakar

To determine what criteria are used in enterprise resource planning (ERP) selection process and what criteria are the most important for firms.

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Abstract

Purpose

To determine what criteria are used in enterprise resource planning (ERP) selection process and what criteria are the most important for firms.

Design/methodology/approach

Through an extensive literature review, 15 selection criteria for the ERP selection process were identified and two were added after initial interviews. A questionnaire including these criteria was formed to secure data from companies. A single informant method was used for each company. To measure the importance of various critical factors a five‐point Likert scale was used in the questionnaire.

Findings

Fit with parent/allied organisation systems is identified as the most important selection criterion. Cross‐module integration, compatibility between other systems, and references of the vendor are identified important factors respectively. Statistically significant differences were also determined between companies using MRP/MRPII versus those using own or no program for “better fit with organisational structure” and “fit with parent/allied organisational systems” criteria.

Research limitations/implications

The effect of each selection criterion on ERP implementations failure rates is still to be investigated.

Practical implications

Useful information about selection criteria on ERP systems for both vendors and firms planning to use these systems.

Originality/value

Two new selection criteria were proposed for the ERP system selection process and some important differences between the criteria used by firms from developed countries and developing countries are determined.

Details

Business Process Management Journal, vol. 11 no. 1
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 8 December 2020

Zeki Ayağ and Funda Samanlioglu

In this paper, two popular multiple-criteria decision-making (MCDM) methods with hesitant fuzzy logic approach; hesitant fuzzy analytic hierarchy process (hesitant F-AHP) and…

Abstract

Purpose

In this paper, two popular multiple-criteria decision-making (MCDM) methods with hesitant fuzzy logic approach; hesitant fuzzy analytic hierarchy process (hesitant F-AHP) and hesitant fuzzy the technique for order preference by similarity to ideal solution (HF-TOPSIS) are integrated as HF-AHP-TOPSIS to evaluating a set of enterprise resource planning (ERP) alternatives and rank them by weight to reach to the ultimate one that satisfies the needs and expectations of a company.

Design/methodology/approach

Selecting the best ERP software package among the rising number of the options in market has been a critical problem for most companies for a long time because of the reason that an improper ERP software package might lead to many issues (i.e. time loss, increased costs and a loss of market share). On the other hand, finding the best ERP alternative is a comprehensive MCDM problem in the presence of a set of alternatives and several potentially competing quantitative and qualitative criteria.

Findings

In this integrated approach, the hesitant F-AHP is used to determine the criteria weights, as the hesitant F-TOPSIS is utilized to rank ERP package alternatives. The proposed approach was also validated in a numerical example that has five ERP package alternatives and 12 criteria by three decision-makers in order to show its applicability to potential readers and practitioners.

Research limitations/implications

If the number of the alternatives and criteria are dramatically increased beyond reasonable numbers, the reaching to final solution will be so difficult because of the great deal of fuzzy based calculations. Therefore, the number of criteria and alternatives should be at reasonable numbers.

Practical implications

The proposed approach was also validated in a illustrated example with the five ERP package options and 12 criteria by the three decision-makers in order to show its applicability to potential readers and practitioners.

Originality/value

Furthermore, in literature, to the best of our knowledge, the authors did not come cross any work that integrates the HF-AHP with the HF-TOPSIS for ERP software package selection problem.

Article
Publication date: 1 October 2006

Mohsen Ziaee, Mohammad Fathian and S.J. Sadjadi

This paper aims to study an enterprise resource planning (ERP) software selection problem. The primary goal of this paper is to propose a two‐phase procedure to select an ERP

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Abstract

Purpose

This paper aims to study an enterprise resource planning (ERP) software selection problem. The primary goal of this paper is to propose a two‐phase procedure to select an ERP vendor and a suitable ERP software.

Design/methodology/approach

In the first phase of the proposed method the preliminary actions – such as constructing a project team, collecting all possible information about ERP vendors and systems, and identifying the ERP system characteristics – are established. In the second phase, the authors present a modular approach to ERP vendor and software selection and propose a 0‐1 programming model to minimize total costs associated with procurement and integration expenditures.

Findings

The proposed approach and the model are considered to be more useful for small manufacturing enterprises (SMEs).

Originality/value

In using the model for analyzing the data about a real case study that is a commercial SME and based on obtained results, some parameter values of the model for all SMEs are suggested.

Details

Information Management & Computer Security, vol. 14 no. 5
Type: Research Article
ISSN: 0968-5227

Keywords

Article
Publication date: 2 May 2008

Aman Deep, Peter Guttridge, Samir Dani and Neil Burns

The purpose of this paper is to present the findings of research carried out as part of an industrial project for selection of an enterprise resource planning (ERP) system in a…

6741

Abstract

Purpose

The purpose of this paper is to present the findings of research carried out as part of an industrial project for selection of an enterprise resource planning (ERP) system in a made‐to‐order (MTO) small‐to‐medium enterprise (SME) scenario. It develops a framework or methodology for selection. It also highlights the areas pertaining to the unique needs of, first, the SME sector and, second, the MTO sector, to be considered while selecting a solution. A work book is developed to provide a structured ERP software selection process for SMEs using a comprehensive literature review plus practical experience. This research is potentially aimed at being useful to other SMEs as a guide for a structured selection process.

Design/methodology/approach

A combination of comprehensive literature review and experience of managing the selection process for an ERP system in an SME was employed for the study.

Findings

Over the past few years, the number of large companies buying new ERP systems has reached saturation point. This has led to the ERP developers seeking instead other potential markets among SMEs. The MTO scenario within the SME sector is one which is very capricious in terms of demand forecasting, lead times, routings, etc. When selecting a system, an organisation in such a segment needs a tailored methodology and a list of key target areas to consider.

Practical implications

The paper represents a very useful source of practical information for the SME sector to consider when selecting an ERP system.

Originality/value

The paper provides valuable insight into the details of ERP selection, focusing on the peculiarities of the SME MTO sector.

Details

Journal of Manufacturing Technology Management, vol. 19 no. 4
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 9 April 2018

Gül Tekin Temur and Bersam Bolat

ERP selection is a multi-faceted process and needs to be successful in dealing with high uncertainty. The purpose of this paper is to propose a novel multi-criteria decision…

Abstract

Purpose

ERP selection is a multi-faceted process and needs to be successful in dealing with high uncertainty. The purpose of this paper is to propose a novel multi-criteria decision making (MCDM) approach, titled as cloud-based design optimization (CBDO), for ERP selection problem to handle high uncertainty with a computationally effective way.

Design/methodology/approach

CBDO has been utilized as an alternative method to fuzzy set theory and stochastic programming, and proposes robust findings for worst case scenario. In order to assess the proposed methodology, a numerical study is conducted by taking into account existing state-of-the-art study on the ERP selection problem for the small medium enterprises. The outputs of the existing state-of-the-art study are assumed as uncertain and varying across time as it is expected in real life; therefore, different scenarios are created in order to reveal the effect of uncertainty on decisions.

Findings

In the methodology, the results given under uncertain conditions are compared with the results obtained under stable conditions. It is clearly seen that ERP system selection problem area has high sensitivity to the uncertain environment, and decision makers should not undervalue the unsteadiness of criteria during the ERP system selection process, especially within volatile economies.

Originality/value

This study contributes to the relevant literature by utilizing CBDO as a MCDM tool in the selection of the ERP software as a first time, and validating the impact of unsteadiness on the ERP selection procedure. It is the first CBDO-based study that validates the effect of distributional differences on uncertainties in the ERP selection processes.

Details

Journal of Enterprise Information Management, vol. 31 no. 3
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 12 October 2015

Björn Link and Andrea Back

The technological innovation of Software as a Service-Enterprise Resource Planning (SaaS-ERP) opens several relative advantages, which may be realized by choosing the proper…

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Abstract

Purpose

The technological innovation of Software as a Service-Enterprise Resource Planning (SaaS-ERP) opens several relative advantages, which may be realized by choosing the proper operation mode. Thus a company looking for a new ERP system faces the question: When and under what conditions does it make sense to choose a SaaS-ERP system? The paper aims to discuss these issues.

Design/methodology/approach

The relative advantage criterion of the diffusion of innovation theory, derived as operation mode differences, determine the conditions under which SaaS- or On-Premise-ERP is preferable: a classification of all main systemic operation mode differences between SaaS and On-Premise for the more complex ERP systems is presented. The systemic differences were identified by analytic generalization using triangulation between a literature review and a multiple case study with four ERP producers.

Findings

The most significant decision factors between ERP operation modes are flexibility, customization, cost, and operation and maintenance. General strategies have been derived by bringing the theoretical reasons together with the operation mode difference criteria. Typical criteria for selecting SaaS-ERP are a lack of IT-capacity or capabilities, as well as high need for flexibility, due to business development, seasonality, growth, collaboration and/or expansion. On-Premise-ERPs should be selected if specific or strategic resources would be outsourced or when major customization is a need.

Research limitations/implications

Case research is limited in that it reveals only ERP producers’ view and omits outlying cases.

Practical implications

The findings implicate that ERP selecting customers should consider and expand their criteria for ERP selection by operation mode criteria.

Originality/value

The classification of the most essential operation mode differences allows, for the first time, ERP selecting customers to design selection strategies. ERP selecting companies should strategically favor the operation mode that best suits their respective organizational characteristics so as to obtain the best possible support from the ERP operation modes.

Details

Journal of Enterprise Information Management, vol. 28 no. 6
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 6 September 2010

Yahia Zare Mehrjerdi

This article provides a brief review of current literature on ERP and its implementation in industries. To fully understand the ERP software key points, risks, benefits, critical…

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Abstract

Purpose

This article provides a brief review of current literature on ERP and its implementation in industries. To fully understand the ERP software key points, risks, benefits, critical success factors, implementation issues, and the fundamental on that are identified and reviewed. Some applications of ERP in public places, government offices, and industries are briefly discussed and four related cases are reviewed.

Design/methodology/approach

Provides a background on enterprise resource planning implementation, key elements of ERP, and review four important cases from the literature in that regard. To better introduce ERP software to new users the risks and benefits of that are discussed in item lists and each are described briefly.

Findings

Pointed to key benefits and risks of enterprise resource systems software and studies four cases from the literature related to the ERP implementation.

Originality/value

Due to the fact that a better management of a system is related to the full understanding of the technologies implemented and the system under consideration, sufficient background on the enterprise resource planning is provided. The lack of research papers and conceptual papers related to risk‐benefit analysis of ERP systems is a motivation for conducting this research.

Details

Business Strategy Series, vol. 11 no. 5
Type: Research Article
ISSN: 1751-5637

Keywords

Article
Publication date: 1 June 2015

Nikolaos A. Panayiotou, Sotiris P. Gayialis, Nikolaos P. Evangelopoulos and Petros K. Katimertzoglou

The purpose of this paper is to describe and analyze the benefits of the application of a requirements engineering framework to assist Enterprise Resource Planning (ERP

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Abstract

Purpose

The purpose of this paper is to describe and analyze the benefits of the application of a requirements engineering framework to assist Enterprise Resource Planning (ERP) development. This framework combines the technology-driven and the process-driven approaches for requirements analysis and implementation. Specific business process modeling methods enhance the framework and assist the formulation of the functional specifications of the ERP system and the management of requirements.

Design/methodology/approach

A case study strategy was chosen as the most appropriate method to answer the research question and test the theoretical propositions. The case study’s unit of analysis is a Greek manufacturing company and its ERP implementation project. A requirements engineering framework enhanced with business process modeling methods was applied and the results were evaluated using metrics for ERP implementation success. Data were collected using multiple sources of evidences, including interviews with various stakeholders, structured questionnaires, direct observations, vendors’ functionality papers and company’s documentation.

Findings

This study proves that the configuration of ERP’s reference models together with the adjustments of organization’s processes, provided through a structured requirements engineering framework can lead to reliable functional specifications, a smooth transition to an ERP system and, eventually, to successful ERP implementation, concerning its alignment with requirements.

Research limitations/implications

A single case study is conducted in a typical manufacturing company, providing opportunities for further research in other industries, testing in parallel well-defined requirements and other success factors for ERP implementation.

Originality/value

The paper fulfils the identified needs for applied methodologies and frameworks for requirements engineering which can assist successful ERP implementations.

Details

Business Process Management Journal, vol. 21 no. 3
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 1 December 2005

Jacques Verville, Christine Bernadas and Alannah Halingten

This paper aims to present a discussion of the critical success factors (CSF) that affect the acquisition process for enterprise resource planning (ERP) software.

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Abstract

Purpose

This paper aims to present a discussion of the critical success factors (CSF) that affect the acquisition process for enterprise resource planning (ERP) software.

Design/methodology/approach

The research strategy was a multiple‐case design with three organizations that had recently completed the acquisition of an ERP solution. The rationale for the multiple‐case design was that, as a research strategy, the focus could be directed to understanding the dynamics and complexities present within each case, these being critical success factors of the ERP software acquisition process within the organization.

Findings

This study identified ten factors critical to the successful outcome of acquiring an ERP solution. Their omission would have resulted in a less than optimal outcome for the organization. For each of the three cases, the elements that stand out the most are as follows: clear and unambiguous authority, a structured, rigorous and user‐driven process, its planning, the establishment of criteria, and the sense of partnership that the team works to establish not only with various user commitments, but also with the potential vendor.

Originality/value

It is important to note that no one CSF alone is going to make an ERP acquisition successful. It is rather the combination of several critical factors that will result in its successful outcome.

Details

Journal of Enterprise Information Management, vol. 18 no. 6
Type: Research Article
ISSN: 1741-0398

Keywords

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