ERP investment analysis using the strategic alignment model

Abstract

PurposeTo develop a model to assist in the analysis of enterprise resource planning (ERP) systems based upon a validated approach to aligning information systems with enterprise strategies.Design/methodology/approachThis paper presents a proposed analytic network process (ANP) model built on the strategic alignment model (SAM) to support the alignment of ERP investment decisions to strategies. The model developed is generic enough to be applied to a wide range of enterprises and applications while being based on the well‐documented SAM. A small illustrative example is provided to show the use and applicability of the model.FindingsThe SAM is found to provide a useful framework for investment analysis. ANP provides a conceptually easy to use but decisionally robust model which can be used to operationalize the SAM for investment analysis.Practical implicationsThe model provides practitioners a flexible tool for making investment decisions not only for ERP systems but also for other IS investments. The paper provides academics and researchers with a methodology for the important area of IS alignment.Originality/valueThe paper represents a novel use of the multi‐attribute decision‐making method of ANP. It is also a new applied tool within the area of strategic IS evaluation.