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To determine what criteria are used in enterprise resource planning (ERP) selection process and what criteria are the most important for firms.
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.
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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.
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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…
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.
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This study aims to provide a good insight into the use of analytic network process (ANP), a multi‐criteria decision‐making methodology in selecting and benchmarking enterprise…
Abstract
Purpose
This study aims to provide a good insight into the use of analytic network process (ANP), a multi‐criteria decision‐making methodology in selecting and benchmarking enterprise resource planning (ERP) systems.
Design/methodology/approach
In this study, ANP model is proposed with an actual case example in selecting the best ERP system as a framework to guide managers.
Findings
This model provides firms with a simple, flexible and easy to use approach to evaluate ERP systems efficiently. Findings demonstrate that the ANP model, with minor modifications, can be useful to all firms in their ERP system selection decisions.
Research limitations/implications
ANP is a highly complex methodology and requires more numerical calculations in assessing composite priorities than the traditional analytic hierarchy process and hence it increases the effort.
Originality/value
This is probably the first time that an attempt has been made to apply the ANP model in ERP system selection decisions. ANP has the ability to be used as a decision‐making analysis tool since it incorporates feedback and interdependent relationships among decision criteria and alternatives. In addition, evaluation and selection of ERP system software can be very useful for both academic research and practice.
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Helena Forslund and Patrik Jonsson
The paper aims to explore how supply chain performance management (PM) is affected by the decisions made in the enterprise resource planning (ERP) system lifecycle phases.
Abstract
Purpose
The paper aims to explore how supply chain performance management (PM) is affected by the decisions made in the enterprise resource planning (ERP) system lifecycle phases.
Design/methodology/approach
Data were collected in a multiple case study of four manufacturing companies.
Findings
Four PM activities and three ERP system lifecycle phases were described and analyzed. Eight propositions were generated from theory and the case analyses. Detailed demand specifications could have improved target setting and reporting possibilities, PM education and training seem to be important in both the implementation and the use phase and supply chain PM is highly affected in the use phase.
Research limitations/implications
The paper is explorative. A required next step would be to test the generated propositions on a larger population.
Practical implications
Propositions of what supply chain PM issues manufacturing companies should consider in the ERP system selection, implementation and use phases are presented. The results indicate that a lot of supply chain PM improvements can be realized within the use phase of an existing ERP system.
Originality/value
No previous paper has focused upon how to consider supply chain PM when implementing ERP systems. This is needed because previous studies have identified ERP systems as obstacles for supply chain PM.
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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.
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Farzaneh Amani and Adam Fadlalla
The purpose of this paper is to gain insight into enterprise resource planning (ERP) research by framing ERP intellectual contributions using a knowledge-centric taxonomy that was…
Abstract
Purpose
The purpose of this paper is to gain insight into enterprise resource planning (ERP) research by framing ERP intellectual contributions using a knowledge-centric taxonomy that was originally proposed as an organizing framework for classifying conceptual contributions in marketing. Thus the paper provides a better understanding of existing gaps and future opportunities in ERP research.
Design/methodology/approach
Using MacInnis framework, the authors classified a sample of 300 ERP articles published during the period 2000-2014 into a topology of four generic contributions types and eight sub-types.
Findings
The findings indicate that whereas the explicating type received the most attention by researches, the debating type received the least. It also seems that there is a temporal dimension to the different types of conceptual contributions. Identification of usefulness of the ERP systems to business was not addressed as would have been predicted by the build-evaluate lens of March and Smith framework.
Research limitations/implications
The main limitation of this research is that only used articles from scholarly journals, and did not include conference proceedings, books, and other outlets. Another limitation is that the search criteria was title-based, which may have missed some relevant papers. Research implications include highlighting the importance of a knowledge-centric view of ERP research, and practical implications include the call for robust measurement criteria for ERP benefits and rigorous ERP comparison schemes.
Originality/value
The main contribution is providing an alternative approach to framing the ERP intellectual contributions. The proposed taxonomy revealed major areas of focus and opportunities for future ERP research emphasis. To the best of the authors’ knowledge, this is the first instantiation of MacInnis framework into ERP research.
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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…
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.
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Keywords
Sanna Laukkanen, Sami Sarpola and Petri Hallikainen
The purpose of this paper is to contribute to the discussion on enterprise resource planning (ERP) system adoption by investigating the relationship of enterprise size to the…
Abstract
Purpose
The purpose of this paper is to contribute to the discussion on enterprise resource planning (ERP) system adoption by investigating the relationship of enterprise size to the objectives and constraints of ERP adoption.
Design/methodology/approach
In the paper, survey data, based on the responses of 44 companies, are analyzed, by dividing the companies into small, medium‐sized, and large enterprises; and comparing these groups, using statistical methods.
Findings
The paper finds significant differences exist between small, medium‐sized and large enterprises regarding the objectives and constraints of ERP system adoption. While small enterprises experience more knowledge constraints, large enterprises are challenged by the changes imposed by ERP adoption. Further, large and medium‐sized enterprises are more outward‐oriented in ERP adoption than small enterprises. Business development, as opposed to mere efficiency improvement, while being the most prevalent objective for ERP adoption in all the company groups, is considered especially important by medium‐sized enterprises. Finally, the findings suggest that, instead of considering small and medium‐sized enterprises as one homogeneous group of smaller enterprises, differences between these two groups of companies should be acknowledged in information system adoption.
Research limitations/implications
The paper shows that the Finnish context and the sample size should be taken into consideration when generalizing the findings.
Practical implications
The paper points out the differences in objectives and constraints between companies of different sizes that should be acknowledged in ERP adoption.
Originality/value
Instead of resorting to the customary approach of considering small and medium‐sized enterprises as a homogeneous group of smaller enterprises, this study acknowledges the differences between these two groups of companies.
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E.M. Shehab, M.W. Sharp, L. Supramaniam and T.A. Spedding
Enterprise resource planning (ERP) system solutions are currently in high demand by both manufacturing and service organisations because they provide a tightly integrated solution…
Abstract
Enterprise resource planning (ERP) system solutions are currently in high demand by both manufacturing and service organisations because they provide a tightly integrated solution to an organisation's information system needs. During the last decade, ERP systems have received a significant amount of attention from researchers and practitioners from a variety of functional disciplines. In this paper, a comprehensive review of the research literature (1990‐2003) concerning ERP systems is presented. The literature is further classified and the major outcomes of each study are addressed and analysed. Following a comprehensive review of the literature, proposals for future research are formulated to identify topics where fruitful opportunities exist.
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