A framework for the ex-ante evaluation of ERP software

Abstract

It has been widely reported that a large number of ERP implementations fail to meet expectations. This is indicative, firstly, of the magnitude of the problems involved in ERP systems implementation and, secondly, of the importance of the ex-ante evaluation and selection process of ERP software. This paper argues that ERP evaluation should extend its scope beyond operational improvements arising from the ERP software/product per se to the strategic impact of ERP on the competitive position of the organisation. Due to the complexity of ERP software, the intangible nature of both costs and benefits, which evolve over time, and the organisational, technological and behavioural impact of ERP, a broad perspective of the ERP systems evaluation process is needed. The evaluation has to be both quantitative and qualitative and requires an estimation of the perceived costs and benefits throughout the life-cycle of ERP systems. The paper concludes by providing a framework of the key issues involved in the selection process of ERP software and the associated costs and benefits.