A hybrid multi-criteria decision making model for ERP system selection

Abstract

ERP system selection is one of the most important steps in an ERP implementation program and is critical to the system success. Due to inherent complexity of ERP systems, diversity of available alternatives in the market and limitation in resources selecting an appropriate ERP project is a risky, difficult and time-consuming task for the organizations. Although ERP system selection has been investigated in previous works vastly, the proposed models have some limitations and inadequacies. In this research, an in-depth study is implemented to identify and categorize ERP selection factors in four main groups. The degree to which the organizational requirements are satisfied by an ERP system is also embedded in the model and discussed as the fifth main decision factor. Then a comprehensive hybrid multi-criteria decision making model is developed in two stages using TOPSIS and PROMETHEE to evaluate and rank the alternatives. The proposed model is practical and quite simple in real world problems of selecting the most appropriate ERP system for the organizations.