On Selection, Implementation, and Operations of ERP Systems

Phases of ERP System Selection

Deciding which ERP system should be implemented and choosing an appropriate implementation partner, is the foundation of a successful first-time implementation of ERP or of an evolution of ERP within an enterprise. Choosing the wrong system and/or partner may have fatal consequences for the company. Hence, one of the main objectives of ERP system selection is to minimize the risk of such mistake.

Selecting a system and a vendor is a complex decision problem that requires a structured approach and represents a project of its own. This project is costly in terms of time and labour, and it requires interdisciplinary knowledge about business processes and information technology. A few process models for software selection have been proposed (Ritschel & Schmieder, 2010; The 6 Phases of Software Selection, 2011; Lin et al., 2006). All these models intend to lead to an optimal decision and to avoid pitfalls during the decision process. We will structure our remarks according the five phases shown in Figure 1. The picture shows a simplified model. Some phases may be performed concurrently, and some may require feedback.

Figure 1.

Phases of ERP system selection

The selection project is defined, prepared, and initiated during project setup. The as-is analysis serves to write down an up-to-date business model describing the relevant organizational units, business processes, and legacy systems effected by the ERP implementation. Business process design covers the definition of to-be business processes and organization as well as the identification of both functional and non-functional requirements. During system evaluation, a market research is performed and viable ERP systems are assessed with respect to the requirements. Considering the gathered information, a decision is made in the last phase, system selection.