Title: Using multiple variables decision-making analysis for ERP selection

Authors: Jen-Her Wu, Wei-Chun Tai, Ray J. Tsai, Iuan-Yuan Lu

Addresses: Department of Information Management, National Sun Yat-Sen University, His-Tze Wan, Kaohsiung 804, Taiwan. ' Department of Information Management, National Sun Yat-Sen University, His-Tze Wan, Kaohsiung 804, Taiwan. ' St. Cloud State University, 720 4th Avenue Street, St. Cloud, MN 56301, USA. ' Department of Business Administration, National Sun Yat-sen University, Hsi-Tze Wan, Kaohsiung, Taiwan

Abstract: Enterprise Resource Planning (ERP) systems have been recognised as excellent tools for integrating information, reducing operational costs and enhancing competitiveness. However, they are expensive and complex software with a well-documented high risk of failure when implemented badly. The selection of an ERP system is therefore critical. This paper identifies a set of evaluating variables within three categories: supplier, product functionality and technical capacity. These variables were based on an extensive literature review and interviews with industry experts. ELECTRE I, a multiple variables decision-making method, may then be applied for pair-wise comparison of alternatives to provide an efficient and effective method for selecting an optimum ERP system for a given situation.

Keywords: enterprise resource planning; ERP selection; ELECTRE I; ERP evaluation; suppliers; product functionality; technical capacity; variables; decision making.

DOI: 10.1504/IJMTM.2009.026195

International Journal of Manufacturing Technology and Management, 2009 Vol.18 No.2, pp.228 - 241

Published online: 28 May 2009 *

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