ERP Software Selection Model Using Analytic Network Process

Abstract

During the implementation of Enterprise Resource Planning (ERP) in any company, one of the most important issues is the selection of ERP software that can satisfy the needs and objectives of the company. This issue is crucial since it may affect the duration of ERP implementation and the costs incurred for the ERP implementation. This research tries to construct a model of the selection of ERP software that are beneficial to the company in order to carry out the selection of the right ERP software vendors according to the needs and objectives of the company. The proposed ERP software selection model is constructed based on three different perspectives, that are business, technology, and organizational perspectives. Each perspective consists of various criteria needed to be considered in the selection of ERP software. The proposed model is built over four clusters, which are Business Perspective (Cost, Quality, Vendor Status, Customization), Technological Perspective (Functionality, Duration of Implementation, User Friendliness, Software Update), Organizational Perspective (Training, Employee Needs, Company Culture, Human Resistance), and Vendor Alternative (Vendor A, Vendor B, Vendor C). Since this problem of ERP software selection is involving many criteria and there exist dependency among criteria, the ERP software selection model is constructed based on the Analytic Network Process methodology. The Super Decision software is used in this research for solving the model using an illustrative example from an automotive finance company in Indonesia.