Selection of enterprise resource planning software using analytic hierarchy process

ABSTRACT Selecting ERP (Enterprise Resource Planning) software is crucial to enhance productivity because it provides high-quality services for end users. The choice of an ERP is a problem that should undertake deeper scrutiny. For example, several criteria are usually present, having different tradeoffs. Analysts and managers, when deciding which ERP to acquire, have key considerations to address when facing the myriad of available software suites with market presence. Multicriteria modelling are used to help decision makers select ERPs and one commonly used technique for helping the process of addressing such problems is Analytic Hierarchy Process (AHP). Our work have surveyed the literature on selection of ERP and we have discovered that acquisition and monthly costs, ERP reputation and references, level of support and training, deployment experience, ERP’s feature set, easiness of use, efficiency and reliability, and maintainability are key criteria. We have used those criteria to create an AHP model for deciding the best one according to judgements of importance. The focus of our work is directed for small and medium organizations. We have created a model for ERP selection of a healthcare facility and computed numerical results using pairwise comparisons and group decision-making by selected managers according to their expertise.

[1]  Mohammed A. Balubaid,et al.  Application of the Analytical Hierarchy Process (AHP) to Multi-Criteria Analysis for Contractor Selection , 2015 .

[2]  Antonella Petrillo,et al.  Performance Measurement Model for the Supplier Selection Based on AHP , 2015 .

[3]  R. Passaro,et al.  AHP-based approaches for supplier evaluation: Problems and perspectives , 2012 .

[4]  Xiaowei Xu,et al.  Multi-criteria decision making approaches for supplier evaluation and selection: A literature review , 2010, Eur. J. Oper. Res..

[5]  Vipul Jain,et al.  Designing an integrated AHP based decision support system for supplier selection in automotive industry , 2016, Expert Syst. Appl..

[6]  Sylvia J. T. Jansen,et al.  The Multi-attribute Utility Method , 2011 .

[7]  J. Olsen,et al.  The European Commission , 2020, The European Union.

[8]  Nachiappan Subramanian,et al.  A review of applications of Analytic Hierarchy Process in operations management , 2012 .

[9]  Mohd Armi Abu Samah,et al.  Application of AHP model for evaluation of solid waste treatment technology. , 2010 .

[10]  Atsa Etoundi Roger,et al.  An AHP Algorithm for an Effective ERP Type Selection Based on the African Context , 2017 .

[11]  Ricardo M. Czekster,et al.  Decisor: A Software Tool to Drive Complex Decisions with Analytic Hierarchy Process , 2019, Int. J. Inf. Technol. Decis. Mak..

[12]  WalleniusJyrki,et al.  Multiple Criteria Decision Making, Multiattribute Utility Theory , 2008 .

[13]  Thomas L. Saaty,et al.  Models, Methods, Concepts & Applications of the Analytic Hierarchy Process , 2012 .

[14]  Ching-Lai Hwang,et al.  Multiple Attribute Decision Making: Methods and Applications - A State-of-the-Art Survey , 1981, Lecture Notes in Economics and Mathematical Systems.

[15]  K. L. Yung,et al.  An RFID-Based Fallen Object Detection System: A Case Study of Hong Kong’s Light Rail System , 2018, IEEE Journal of Radio Frequency Identification.

[16]  Thomas L. Saaty.  What is the analytic hierarchy process , 1988 .

[17]  Debendra Kumar Mahalik.  Information Technology Implementation Prioritization in E-governance: An Integrated Multi Criteria Decision Making Approach , 2011 .

[18]  Stefan Koch,et al.  Differences in Characteristics of the ERP System Selection Process Between Small or Medium and Large Organizatons , 2000 .

[19]  Gülay Barbarosoğlu,et al.  An Application of the Analytic Hierarchy Process to the Supplier Selection Problem , 1997 .

[20]  Gautam Mitra,et al.  Mathematical Models for Decision Support , 1987, NATO ASI Series.

[21]  Jiří Franek,et al.  Judgment Scales and Consistency Measure in AHP , 2014 .

[22]  Suryo Widiantoro,et al.  The Implementation of Analytical Hierarchy Process Method for Outstanding Achievement Scholarship Reception Selection at Universal University of Batam , 2017 .

[23]  Ali Görener,et al.  Application of Combined SWOT and AHP: A Case Study for a Manufacturing Firm , 2012 .

[24]  Alessio Ishizaka,et al.  Review of the main developments in the analytic hierarchy process , 2011, Expert Syst. Appl..

[25]  D. Mahalik.  Outsourcing in e-Governance : A Multi Criteria Decision Making Approach , 2011 .

[26]  Theodor J. Stewart,et al.  Multiple criteria decision analysis - an integrated approach , 2001 .

[27]  Patchara Boonyaprasit,et al.  How SMEs make their decision for choosing an optimal ERP provider by using AHP method , 2010 .

[28]  Yin-Feng Xu,et al.  Consensus models for AHP group decision making under row geometric mean prioritization method , 2010, Decis. Support Syst..

[29]  Fernando Ferreira,et al.  A multiple criteria group decision-making approach for the assessment of small and medium-sized enterprise competitiveness , 2019, Management Decision.

[30]  Ludovic-Alexandre Vidal,et al.  Using a Delphi process and the Analytic Hierarchy Process (AHP) to evaluate the complexity of projects , 2011, Expert Syst. Appl..

[31]  Zhiwu Li,et al.  Green design assessment of electromechanical products based on group weighted-AHP , 2015, Enterp. Inf. Syst..

[32]  Thomas L. Saaty,et al.  Group Decision Making and the AHP , 1989 .

[33]  Klaus D. Goepel,et al.  Comparison of Judgment Scales of the Analytical Hierarchy Process - A New Approach , 2019, Int. J. Inf. Technol. Decis. Mak..

[34]  Chin-Tsai Lin,et al.  An ERP model for supplier selection in electronics industry , 2011, Expert Syst. Appl..

[35]  Luis G. Vargas,et al.  Decision Making with the Analytic Network Process: Economic, Political, Social and Technological Applications with Benefits, Opportunities, Costs and Risks , 2013 .

[36]  Jean Pierre Brans,et al.  HOW TO SELECT AND HOW TO RANK PROJECTS: THE PROMETHEE METHOD , 1986 .

[37]  L. Xu,et al.  A new approach to decision-making with key constraint and its application in enterprise information systems , 2008, Enterp. Inf. Syst..

[38]  Thomas L. Saaty,et al.  When is a Decision-Making Method Trustworthy? Criteria for Evaluating Multi-Criteria Decision-Making Methods , 2015, Int. J. Inf. Technol. Decis. Mak..

[39]  Chen-Fu Chien,et al.  An AHP-based approach to ERP system selection , 2005 .

[40]  Maria Manuela Cunha,et al.  ERP Selection using an AHP-based Decision Support System , 2016, Inf. Resour. Manag. J..

[41]  Gwo-Hshiung Tzeng,et al.  Compromise solution by MCDM methods: A comparative analysis of VIKOR and TOPSIS , 2004, Eur. J. Oper. Res..

[42]  Hooshang M. Beheshti,et al.  Improving productivity and firm performance with enterprise resource planning , 2010, Enterp. Inf. Syst..

[43]  H. S. C. Perera,et al.  Analytic Hierarchy Process for Selection of Erp Software for Manufacturing Companies , 2008 .

[44]  Abbas Mardani,et al.  Multiple criteria decision-making techniques and their applications – a review of the literature from 2000 to 2014 , 2015 .

[45]  Nazmun Nahar,et al.  ERP systems success: an empirical analysis of how two organizational stakeholder groups prioritize and evaluate relevant measures , 2007, Enterp. Inf. Syst..

[46]  Rupashree Baral,et al.  Adoption of ERP system: An empirical study of factors influencing the usage of ERP and its impact on end user , 2015 .

[47]  Godwin G. Udo.  Using analytic hierarchy process to analyze the information technology outsourcing decision , 2000, Ind. Manag. Data Syst..

[48]  Thomas L. Saaty,et al.  How to Make a Decision: The Analytic Hierarchy Process , 1990 .

[49]  Liu Rui.  Introduction to the ANP Super Decisions Software and Its Application , 2003 .

[50]  Hing Kai Chan,et al.  An AHP model for selection of suppliers in the fast changing fashion market , 2010 .

[51]  Stephen C. Ward,et al.  Analytical Planning: The Organization of Systems , 2013 .

[52]  Klaus D Goepel,et al.  Implementation of an Online Software Tool for the Analytic Hierarchy Process (AHP-OS) , 2018, International Journal of the Analytic Hierarchy Process.

[53]  Sharfuddin Ahmed Khan,et al.  Supply chain performance measurement and improvement system , 2018, Journal of Modelling in Management.

[54]  S. Khan,et al.  A multi-criteria decision-making approach to rank supplier selection criteria for hospital waste management: A case from Pakistan , 2018, Waste management & research : the journal of the International Solid Wastes and Public Cleansing Association, ISWA.

[55]  Ondrej Zach,et al.  ERP system implementation in SMEs: exploring the influences of the SME context , 2014, Enterp. Inf. Syst..

[56]  Petri Hallikainen,et al.  ERP System Adoption - Does the Size Matter? , 2005, Proceedings of the 38th Annual Hawaii International Conference on System Sciences.

[57]  Ralph E. Steuer,et al.  Multiple Criteria Decision Making, Multiattribute Utility Theory: The Next Ten Years , 1992 .

[58]  F. Dweiri,et al.  A multi-criteria decision support system to rank sustainable desalination plant location criteria , 2018, Desalination.

[59]  Jan Stoklasa,et al.  Aggregation in the analytic hierarchy process: Why weighted geometric mean should be used instead of weighted arithmetic mean , 2018, Expert Syst. Appl..

[60]  Ching-Lai Hwang,et al.  Fuzzy Multiple Attribute Decision Making - Methods and Applications , 1992, Lecture Notes in Economics and Mathematical Systems.

[61]  J. Sweller.  COGNITIVE LOAD THEORY, LEARNING DIFFICULTY, AND INSTRUCTIONAL DESIGN , 1994 .

[62]  D. Schmoldt,et al.  The Analytic Hierarchy Process in Natural Resource and Environmental Decision Making , 2001, Managing Forest Ecosystems.

[63]  Alessio Ishizaka,et al.  Analytic Hierarchy Process and Expert Choice: Benefits and limitations , 2009, OR Insight.

[64]  H Hamidi,et al.  A Fuzzy Decision Making Approach to Enterprise Resource Planning System Selection , 2015 .

[65]  G. A. Miller.  THE PSYCHOLOGICAL REVIEW THE MAGICAL NUMBER SEVEN, PLUS OR MINUS TWO: SOME LIMITS ON OUR CAPACITY FOR PROCESSING INFORMATION 1 , 1956 .

[66]  Mehpare Timor,et al.  The analytic hierarchy process and analytic network process: an overview of applications , 2010 .

[67]  R. Hill,et al.  Using the Analytic Hierarchy Process to Structure the Supplier Selection Procedure , 1992 .

[68]  Stefan Koch,et al.  ERP selection process in midsize and large organizations , 2001, Bus. Process. Manag. J..

[69]  Sushil Kumar,et al.  Analytic hierarchy process: An overview of applications , 2006, Eur. J. Oper. Res..

[70]  I. Antoniadis,et al.  Business Intelligence During Times of Crisis: Adoption and Usage of ERP Systems by SMEs , 2015 .

[71]  J. Rezaei.  Best-worst multi-criteria decision-making method , 2015 .

[72]  B. Roy.  THE OUTRANKING APPROACH AND THE FOUNDATIONS OF ELECTRE METHODS , 1991 .

[73]  Jun-Der Leu,et al.  Enterprise resource planning (ERP) implementation using the value engineering methodology and Six Sigma tools , 2017, Enterp. Inf. Syst..

[74]  Georgi Georgiev,et al.  ERP Security, Audit and Process Improvement , 2019 .

[75]  T. L. Saaty.  A Scaling Method for Priorities in Hierarchical Structures , 1977 .

[76]  James S. Dyer,et al.  Maut — Multiattribute Utility Theory , 2005 .

[77]  Noureddine Motaki,et al.  ERP selection: A step-by-step application of AHP Method , 2017 .

[78]  Vipul Jain,et al.  Application of AHP in reverse logistics service provider selection: a case study , 2017 .

[79]  Westerdals-Oslo.  ERP systems selection in multinational enterprises: a practical guide , 2018 .

[80]  Jyri Mustajoki,et al.  Comparison of multi-criteria decision analytical software for supporting environmental planning processes , 2017, Environ. Model. Softw..

[81]  Moutaz Haddara,et al.  ERP Selection: The SMART Way , 2014, CENTERIS 2014.

[82]  Theodor J. Stewart,et al.  Multiple Criteria Decision Analysis , 2001 .