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Exploring Multi-Criteria Decision-Making Methods in
Exploring Multi-Criteria Decision-Making Methods in
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Procedia
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Computer Science
Science 00
00 (2022)
(2022) 000–000
000–000
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CENTERIS
CENTERIS –– International
International Conference
Conference on
on ENTERprise
ENTERprise Information
Information Systems
Systems // ProjMAN
ProjMAN ––
International Conference
International Conference on
on Project
Project MANagement
MANagement // HCist
HCist –– International
International Conference
Conference on
on Health
Health
and Social
and Social Care
Care Information
Information Systems
Systems and
and Technologies
Technologies 2022
2022
Abstract
Abstract
Enterprise
Enterprise resource
resource planning
planning (ERP)
(ERP) adoption
adoption literature
literature has
has aa consensus
consensus that
that selecting
selecting the
the right
right ERP
ERP system
system is is one
one of
of the
the most
most
critical
critical success
success factors
factors in
in the
the ERP
ERP adoption
adoption lifecycle.
lifecycle. While
While choosing
choosing aa non-fitting
non-fitting ERPERP system
system may
may lead
lead to
to adoption
adoption failures,
failures,
however
however very
very few
few papers
papers focus
focus solely
solely on
on this
this selection
selection phase.
phase. Hence,
Hence, given
given the
the criticality
criticality of
of the
the ERP
ERP selection
selection phase,
phase, this
this paper
paper
aims to
aims to identify
identify and
and review
review thethe different
different ERP
ERP selection
selection methods
methods in in extant
extant literature.
literature. This
This research
research also
also presents
presents the
the factors
factors and
and
variables included
variables included inin each
each identified
identified selection
selection method
method in in ERP
ERP literature.
literature. As
As aa result,
result, each
each method
method identified
identified was
was reviewed,
reviewed, analyzed,
analyzed,
and
and summarized.
summarized. Our Our main
main findings
findings suggest
suggest that
that ERP
ERP selection
selection isis aa multi-criteria
multi-criteria decision-making
decision-making (MCDM)
(MCDM) problem,
problem, with
with various
various
methods
methods and techniques that can be utilized for such problems. Several MCDM methods have been used in literature, but
and techniques that can be utilized for such problems. Several MCDM methods have been used in literature, but often
often
complementing more
complementing more than
than one
one method
method combined
combined at at aa time.
time. This
This is is since
since some
some methods
methods excel
excel in
in considering
considering factors
factors inin uncertain
uncertain
environments, and
environments, and other
other methods
methods are are best
best in
in evaluating
evaluating qualitative
qualitative andand quantitative
quantitative factors.
factors. Finally,
Finally, while
while there
there are
are some
some methods
methods
that
that were
were used
used for
for cloud-ERP
cloud-ERP selections,
selections, there
there is
is no
no clear
clear consensus
consensus in in extant literature if
extant literature if some
some methods
methods could
could best
best fit
fit specifically
specifically
cloud-ERP contexts
cloud-ERP contexts in
in contrast
contrast toto on-premises
on-premises counterparts.
counterparts.
©
© 2022
© 2023 The
2022 The Authors.
Authors. Published
Published by
by ELSEVIER
Elsevier B.V.B.V.
ELSEVIER B.V.
This
This is
This is an
is an open-access
an open access article
open-access article under
under the
the CC
CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
(https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review
Peer-review under
Peer-review under responsibility
responsibilityofof
underresponsibility the
ofthe scientific
thescientific committee
committee
scientific committee of
of the
of the CENTERIS
CENTERIS
the CENTERIS –– International
– International Conference
Conference
International on
on ENTERprise
on ENTERprise
Conference Information
ENTERprise
Information Systems
Systems- //International
Systems / ProjMAN
Information ProjMAN
ProjMAN -- Conference
International
International onConference on
on Project
Project /MANagement
Project MANagement
Conference // HCist
HCist - International
MANagement -- International
HCistConference Conference
on Health
International Conference on
and Social
on Care
Health and
and Social
Information
Health Care
Systems
Social andInformation
Care Technologies
Information Systems
2022 and
Systems and Technologies
Technologies 20222022
Keywords: ERP
Keywords: ERP selection;
selection; Literature
Literature Review;
Review; Multi-Criteria
Multi-Criteria Decision-Making.
Decision-Making.
*
* Corresponding
Corresponding author.
author.
E-mail address: moutaz.haddara@kristiania.no
E-mail address: moutaz.haddara@kristiania.no
1877-0509
1877-0509 ©© 2022
2022 The
The Authors.
Authors. Published
Published byby ELSEVIER
ELSEVIER B.V.
B.V.
This
This is
is an
an open
open access
access article
article under
under the
the CC
CC BY-NC-ND
BY-NC-ND license
license (https://creativecommons.org/licenses/by-nc-nd/4.0)
(https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under
Peer-review under responsibility
responsibility of
of the
the scientific
scientific committee
committee of
of the
the CENTERIS
CENTERIS –– International
International Conference
Conference on
on ENTERprise
ENTERprise Information
Information Systems
Systems //
ProjMAN
ProjMAN -- International
International Conference
Conference on on Project
Project MANagement
MANagement // HCist
HCist -- International
International Conference
Conference on
on Health
Health and
and Social
Social Care
Care Information
Information Systems
Systems
and Technologies
and Technologies 2022
2022
1877-0509 © 2023 The Authors. Published by Elsevier B.V.
This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under responsibility of the scientific committee of the CENTERIS – International Conference on ENTERprise
Information Systems / ProjMAN - International Conference on Project MANagement / HCist - International Conference
on Health and Social Care Information Systems and Technologies 2022
10.1016/j.procs.2023.01.363
880 Kjetil Hansen et al. / Procedia Computer Science 219 (2023) 879–888
2 Kjetil Hansen et al. / Procedia Computer Science 00 (2022) 000–000
1. Introduction
Enterprise Resource Planning systems, simply known as ERP systems, are large information systems (IS) platforms
where businesses can automate and optimize their competitive business processes and enable seamless cross-
functional transactions [1]. The applications of ERP have ties to Material Requirements Planning, also known as MRP
[2]. MRP is a term first coined by the Gartner Group back in the 1990s, and these days ERP has evolved from MRP
into a complete system. Many organizations adopt ERP systems to reduce costs and optimize their business processes;
some could be at a substantial economic loss. This is because selecting the right ERP system for your organization is
critical to success. If one chooses an ERP unsuitable for the organization, one would be predestined to fail [3].
The selection of an ERP system is a critical phase in the ERP adoption and implementation lifecycle, which is (the
lifecycle) comprising several phases. Several studies provided adoption and implementation lifecycles and
frameworks, which usually differ in naming and number of phases. However, most models cover the main tasks when
adopting a new system [4]. One of the established ERP lifecycle models is the ERP lifecycle model developed by [5].
The lifecycle model [5] is a six-phase model and was one of the earliest frameworks to include the retirement phase
in the ERP literature [6]. As mentioned above, the ERP lifecycle model comprises several phases that an ERP system
goes through during its lifetime in organizations. The phases (see Fig. 1) are adoption decision, acquisition (where the
ERP selection is undertaken), implementation, use and maintenance, evolution, and the retirement phase. The
acquisition phase is the stage that follows the organization’s assessment of whether they are ready for and need an
ERP system. The acquisition phase includes several tasks and operations, including the requirements analysis and the
ERP selection that matches the needs of the adopting organization. It is also important to note that the ERP lifecycle
is a recursive model, which means that the retirement phase is the point where the current system (e.g., ERP, manual)
is no longer capable of scalability or is obsolete and needs to be replaced with newer and state-of-the-art technologies
[5]. While the ERP lifecycle phases may differ between on-premises ERP vs. cloud-ERP systems, the selection phase
will always be a part of any ERP adoption project and product lifecycle.
2. Methodology
ERP selection is considered a multiple-criteria decision-making (MCDM) problem. While the primary papers
employed in this literature focused on ERP selection methods, however, due to the few articles that satisfy these
criteria, articles that present multi-criteria decision-making methods outside the ERP domain and were used in other
enterprise systems contexts (e.g., CRM), were also sought after. Unfortunately, the authors were not able to identify
such studies. Hence, to create a better foundation for the discussion part of this paper, it was found beneficial to discuss
articles that provide a case or review of the usefulness of the different MCDM methods. Investigating how the different
MCDM processes work and how they are being applied (in other contexts) was found helpful in gaining a better and
a more holistic view of the selection process and activities in general. In addition, this review utilizes both papers on
ERP selection methods that have their basis on real-world cases and papers that focus solely on some essential factors
related to ERP selection in the discussion.
Google Scholar and the Web of Science (WoS) databases were used when searching for relevant research
publications. When using Google Scholar, Boolean searches were used with “OR” and “AND” to limit or expand our
search results. The keywords used were “enterprise resource planning systems”, “selection”, “acquisition”, “enterprise
systems”, “methods”, and their abbreviations and combinations. When looking at different ERP selection methods,
the unique techniques have their research-based (in most cases) on real-world case studies. These papers provided
detailed case studies to aid in understanding the circumstances surrounding the various presented ERP selection
scenarios. WoS was the primary source used for finding relevant research papers. This is because, unlike Google
scholar, it can ensure that the articles have gone through the peer-review process. This research reviewed articles
published between 1990 to 2022. Initially, sixty-six articles qualified the search criteria, and the authors scanned all
the identified potential papers to double-check their fitness for the research scope. Several articles were initially
identified but were later discarded as they did not provide details of the selection methods used in their cases, nor the
selection process was the focus of those papers. There are limited but different types of ERP selection methods
reported in the existing literature, and an effort was made to find articles that covered the selection process in detail.
However, WoS and Google Scholar searches showed that the literature within the domain is scarce. Thus, finally,
seven papers were identified and deemed relevant for this review.
3. Findings
visualizes their business processes, the other part of the selection process utilizes a structured multi-criteria evaluation
of 11 factors (Table 1).
While the paper concluded that after comparing both the SAP A1 and SAP B1 systems, B1 would be approved and
chosen, it also makes the case that the eleven selection factors aided in widening the selection scope and ensured that
every business requirement was accounted for [7].
scenarios that feature uncertain factors, the CBDO method is a functioning MCDM technique in the decision-making
process when selecting ERP systems in uncertain environments (Fig. 2).
is commonly used in vendor selection scenarios [7]. On the other hand, the PROMETHEE method provides an
inclusive and rational framework for structuring multi-criteria decision-making problems, by identifying and
quantifying its conflicts and collaborations [8]. Hence, these methods were then applied to several SMEs within the
region of Istanbul in Turkey to demonstrate the viability of the proposed methodology. The goal of this study was to
provide a solution to the problem of selecting the “right” ERP system. The combined methods in this study utilized
the ANP method to determine the value or weight of all the criteria. Then, together with PROMETHEE, they were
used to optimally rank the alternative system choices [5]. The Fig. 4 below illustrates the combined methodology of
ANP and PROMOTHEE, as presented by [5].
In their research, [11] presented the group analytic hierarchy process sorting method or GAHPSort in cloud-ERP
selection. This method, while new, has been used previously to select cloud-based ERP systems [11]. The paper uses
a real-world case study to demonstrate the case on how the GAHPSort method can be used in cloud-based ERP vendor
selection. However, this method cannot be utilized alone since GAHPSort is a sorting process, not a ranking one.
Therefore, this method was used in conjunction with ANP. GAHPSort also differs from other methods previously
presented in this literature review because it relies on the decision makers` preferences [11]. The selection process
consisted of two stages. Firstly, they sorted all cloud-based ERP candidates, and secondly, they utilized ANP to look
Kjetil Hansen et al. / Procedia Computer Science 219 (2023) 879–888 885
Kjetil Hansen et al. / Procedia Computer Science 00 (2022) 000–000 7
at the interactions between the different criteria. Since GAHPSort is based on the AHP concept, it takes advantage of
its properties [11]. The paper concludes that the combined method of GAHPSort and ANP proved useful in selecting
the most suitable cloud-ERP package (Fig. 5).
4. Discussion
The previous section of this paper provided an overview of the different articles and the methods used in the various
case studies reported in those articles. In the discussion section of this paper, an effort was made to discuss the methods
in more details. The table 2 below summarizes the different methods and their main strengths and weaknesses.
Fuzzy AHP + Values are both objective and subjective factors. Aids in
TOPSIS ranking alternatives are based on the distance between Does not account for weight elicitation and judgment
positive and negative ideal situations. Takes fuzzy/uncertain checks.
factors into account.
ANP + CI + The combined methods allow decision makers to find an The selection outcomes may change if one chooses to
MACBETH average of factors weighted individually and in conjunction. ignore specific interactions among the various factors.
AHP Excels at explaining the value of intangible and qualitative
Lacks numerical measure, values, and indicators.
measures.
CBDO Supportive MCDM method in high uncertainty Relatively new, it has not gone through enough
environments. applications in ERP literature.
ANP + Allows the consideration of the decision-maker’s Relying on decision-makers’ own judgements and can
GAHPSort preferences. possibly entail potential risk or bias.
The SMART way of selecting ERP systems is proven to be a suitable method to ensure all the most critical factors
are considered and numerically evaluated and ranked. By utilizing this method in a case study [7], the findings suggest
the effectiveness of such a method in MCDM problems. The method's strengths lie in combining the process mapping
method and the multi-criteria evaluation. Access to a company's employee information is a great way to construct
business process maps that ensure that all the critical business processes are covered by the chosen system. However,
one could make the argument that this method's strength is also its weakness. If, for any reason, the selection experts
were unable to obtain information about the employee’s day-to-day operations and processes, the selection process in
this case will be very challenging. On the other hand, the critical process visualization, evaluation, and re-engineering
are universally recommended efforts before ERP system selections [7].
The ANP and PROMETHEE II method presented by [8], was chosen for several reasons in that case. First, it
allowed the evaluation of intangible and tangible factors. While the strength of using ANP is that it incorporates
interrelationships among factors [8], the PROMETHEE method allowed the ranking of alternatives, specifically
among conflicting criteria [8]. Which is deemed potentially a good complementary method to ANP. However, the
PROMETHEE method lacks the structuring possibility, which would be solved by utilizing AHP instead of ANP
[18].
The fuzzy AHP method is used to determine the weights of the decisions and incorporate vagueness, and the
TOPSIS method is used to evaluate and rank the decision alternatives [11]. While, the authors did not cover
weaknesses in the fuzzy AHP TOPSIS method within their case, however, [19] points out a weakness in the traditional
TOPSIS methodology. The article argues that evaluation of a system by employing realistic projected values is not
always achievable in real-life problems and cases [19]. Another weakness of TOPSIS, and perhaps the most critical
drawback, is that it does not provide weight elicitation and consistent checks and feedback loops for judgments [20],
making it subjective to an extent. Those mentioned drawbacks could be potentially reduced or eliminated by
employing the fuzzy AHP method. Hence, the fuzzy AHP and TOPSIS methods were combined and employed by
[11], as those methods fit the fuzzy or uncertain decision-making environments. So instead of making unrealistic
assumptions, the study used fuzzy logic to capture the imprecision inherited in the decision situation [11].
The combination of the strengths of the ANP, CI, and MACBETH methods lies in the way they complement each
other. For example, the CI method determines similar or different behaviors among the chosen criteria and then utilizes
MACBETH to define the parameters for each criterion [16]. Another strength lies in the use of the choquet integral,
as it allows finding an average of weighted factors, both individually and in conjunction with each other [16]. Once
again, the literature does not provide a discussion on the weaknesses of this method, however, the [16] states that
ignoring factor interactions could drastically change the selection outcome and, in this case, may reverse or alter the
result. According to [9] a strength of utilizing only the AHP method is its uncomplex modeling primitives and
straightforward analysis capabilities for the decision-making process [9]. However, according to another research that
covers the strengths and weaknesses of the AHP method, it would appear not to be as useful when the decision is
based on numerical variables and qualities [21].
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Kjetil Hansen et al. / Procedia Computer Science 00 (2022) 000–000 9
When it comes to the CBDO method, there is not much information about its drawbacks in the ERP literature.
However, some scholars argue that this novel method is suitable in uncertain decision-making situations, where CBDO
becomes an efficient tool if more than five uncertainties are present in the decision problem [10, 22]. Considering the
method's novelty, then it is fair to assume it has not gone through enough testing in the ERP domain.
The ANP and GAHPSort methods combined allow for integrating the benefits and strengths of both ANP and AHP
methods combined. What sets GAHPSort apart from other methods like AHP or TOPSIS, is that other methods are
capable of prioritizing alternatives, while the GAHPSorts extends the classical AHP and is capable of sorting problems
with a large number of alternatives. Lastly, as a part of this method, the ANP method allows for feedback and enables
the ERP selection team to deal with direct and indirect problems [17]. No specific weaknesses were covered in the
extant literature, and the search for other papers that combined the ANP and GAHPSort methods yielded no results.
While most of the reviewed studies based their cases on companies from different sectors, most of these were from
small and medium-sized enterprises. Hence, it is also preferred to look at instances where the MCDM methods have
been proven successful in businesses that fall under micro or large size categories. This is because most of the literature
acknowledges organization size as a factor that directly impacts ERP implementation and adoption projects [1, 3, 23].
As in almost all the reviewed papers, the methods utilized in the reported cases and selection methods yielded adequate
results, and the selected system fulfilled the requirements of the organizations. Thus, it is clear from the ERP selection
methods literature that it considers MCDM methods as the state-of-the-art techniques in ERP selection. While all the
presented methods in the literature were deemed successful, it is unclear if specific methods of those will be equally
successful if adopted in different organizations sizes or contexts.
ERP selection methods can be considered an MCDM problem since multiple criteria are assessed during the ERP
selection process. While each method is distinctive, most of those methods share some properties and the considered
factors with other methods. It is clear from looking at how the different methods work that they have their strengths
and weaknesses. While some excel at considering factors in uncertain environments, others evaluate how the weight
of factors are valued individually, and in conjunction with other factors (factor relationships and influences). In
comparison, the ERP selection research has presented a few successful selection methods and cases but did not discuss
the weaknesses, generalizability, or transferability of the selection methods to other organizations or contexts. This is
also expected, as ERP adoption projects are very contextual, and the factors identified for the selection may vary in
nature, impact, or value.
As technology and our access to information are constantly evolving and scaling, so is the field of ERP in general
and ERP selection in specific. The future may see a rise of new factors or methods that play even more prominent
roles in ERP system selection landscape in the future, especially in the cloud ERP research domain. Reducing risk in
ERP selection is critical, and a field that we recommend should see more up-to-date research. Considering there´s still
a few experimentations with different selection methods in existing literature, one could argue that the research area
focusing on ERP selection methods is still in its infancy. It is clear from the literature that many researchers try new
ways to select the right ERP system and find a consistent and efficient method. While this literature review has
provided an overview of methods and their respective strengths and weaknesses, it was challenging to conclude how
to rank the reviewed methods based on their success and viability for other target cases or contexts.
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