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Using multiple variables decision-making analysis for ERP selection

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.