ERP Selection using an AHP-based Decision Support System

Abstract

Selecting the best desirable Enterprise Resources Planning (ERP) system has been a critical problem for organizations for a long time, as the failure on the selection process may have a highly negative impact in terms of costs and market share of a company. It is one of the most important decision making issues covering both qualitative and quantitative factors for organization. Multiple-criteria decision-making has been proved to be a useful approach to analyze these conflicting qualitative and quantitative factors. Literature offers proposals and approaches to handle this kind of problem; Analytic Hierarchy Process (AHP) has been applied successfully in most cases of software packages selection problems. This paper proposes an AHP model for the selection of an ERP system. The model's set of criteria was extracted from the literature review and validated by Portuguese organizations. This model can be applied in the ERP system selection using a software application that is under development. This software application eases the application of the AHP process to the selection of ERP packages and will provide input from real-world cases that will allow updating and refining the model.