Enterprise resource planning

ERP Evaluation and Selection process. A successful ERP project requires selecting an ERP solution, implement the solution, manage changes and examine the practicality of the system, Wei and Wang, (2004). Wrong ERP solution choice would either fail the implementation or weaken the system to a greater impact on the enterprise, Hicks, (1995); Wilson, (1994).

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Most enterprises often jump into looking at ERP functions and features rather than examining the strategy and business processes. It is important for management to know the current strategy, processes and supporting systems compared to what they could be with the new systems, Donovan, (2001).

For most enterprises, the decision to implement ERP functionalities will require buying a software package from one of the more popular vendors on ERP market like SAP and Oracle. But the selection process is not a straightforward task, hence thorough understanding of what ERP packages are to offer, differences in each of them and what might be at stake in selecting one package over the other should be well examined, Sammon and Adam, (2000).

Evaluating and selecting an ERP system can be a very complex process on the other hand, but it should be a ‘fact-based’ process that will bring the enterprise to the point where comfortable & well-informed decisions can be made, Donovan, (2001).

Thus, in an online poll conducted by ESI International survey of 2,000 business professionals, (2005), fig. 1, below, it clearly show that most software projects, ERP inclusive, failed due to lack of adequate requirements definition.

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In addition to the above, typical ERP project implementation can still fail due to wrong solution choice, Donovan, (2001).

Therefore, a research carried out by Management Agility Inc, (2005), revealed that it is imperative to adopt a thorough evaluation and evaluation process before adopting any ERP solution in SMEs. Hence, there are eight steps detailed below in the flowchart, fig. 2, for a careful and reasonable level of a successful ERP implementation in SMEs. None of these steps must be rush through or skip to avoid any element of failure.

These eight steps can be categorised into 5 stages;