Exploring Multi-Criteria Decision-Making Methods in ERP Selection

Abstract

Enterprise resource planning (ERP) adoption literature has a consensus that selecting the right ERP system is one of the most critical success factors in the ERP adoption lifecycle. While choosing a non-fitting ERP system may lead to adoption failures, however very few papers focus solely on this selection phase. Hence, given the criticality of the ERP selection phase, this paper aims to identify and review the different ERP selection methods in extant literature. This research also presents the factors and variables included in each identified selection method in ERP literature. As a result, each method identified was reviewed, analyzed, and summarized. Our main findings suggest that ERP selection is a multi-criteria decision-making (MCDM) problem, with various methods and techniques that can be utilized for such problems. Several MCDM methods have been used in literature, but often complementing more than one method combined at a time. This is since some methods excel in considering factors in uncertain environments, and other methods are best in evaluating qualitative and quantitative factors. Finally, while there are some methods that were used for cloud-ERP selections, there is no clear consensus in extant literature if some methods could best fit specifically cloud-ERP contexts in contrast to on-premises counterparts.