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Abstract
Purpose - To determine what criteria are used in enterprise resource planning (ERP) selection process and what criteria are the most important for firms.
Design/methodology/approach - Through an extensive literature review, 15 selection criteria for the ERP selection process were identified and two were added after initial interviews. A questionnaire including these criteria was formed to secure data from companies. A single informant method was used for each company. To measure the importance of various critical factors a five-point Likert scale was used in the questionnaire.
Findings - Fit with parent/allied organisation systems is identified as the most important selection criterion. Cross-module integration, compatibility between other systems, and references of the vendor are identified important factors respectively. Statistically significant differences were also determined between companies using MRP/MRPII versus those using own or no program for "better fit with organisational structure" and "fit with parent/allied organisational systems" criteria.
Research limitations/implications - The effect of each selection criterion on ERP implementations failure rates is still to be investigated.
Practical implications - Useful information about selection criteria on ERP systems for both vendors and firms planning to use these systems.
Originality/value - Two new selection criteria were proposed for the ERP system selection process and some important differences between the criteria used by firms from developed countries and developing countries are determined.
Keywords Manufacturing resource planning, Selection, Surveys, Turkey
Paper type Research paper
Introduction
Every companies collects, generates, and stores vast quantities of data. In most companies, information is spread across dozens or even hundreds of separate computer systems, each housed in an individual function, business unit, region, factory or office (Davenport, 1998). Enterprise resource planning (ERP) systems integrate the fragmented information to support decision-making.
ERP systems are integrated, enterprise wide systems, which automate core corporate activities such as manufacturing, human resources, finance and supply chain management. By using this system companies can achieve many improvements such as easier access to reliable information, elimination of redundant data and operations, reduction of cycle times, increased efficiency hence reducing costs. In global competitive conditions ERP has risen in strategic significance and choosing the right ERP package has been more important. Determining the ERP Package Selecting Criteria has also gained a crucial role because of all these reasons.
After...