Selecting The Best ERP system for SMEs using a combination of ANP and PROMETHEE methods

Abstract

Enterprise Resource Planning (ERP) system, which integrates all of the units within an organization at the information level, plays an important role for a successful enterprise. With the right ERP system, it is easier to provide coordination.between the units, eliminate waste and make faster and better decisions. Adopting an ERP system is a significant investment decision for a firm, therefore a great deal of attention should be given to the selection of the right system. Since there are a large number of criteria to consider in selecting an ERP system, the process itself is regarded as a complex multi-criteria decision making problem. In this study, two prevalent multi-criteria decision making techniques, Analytic Network Process (ANP) and Preference Ranking Organization Method for Enrichment Evaluations (PROMETHEE), are used in combination to better address the ERP selection problem. First, ANP is used to determine the weights of all criteria, and then, the obtained weights are used in the PROMETHEE method for optimal ranking of the alternative system choices. To demonstrate the viability of the proposed methodology, an application case is performed on the ERP selection problem for the Small Medium Enterprises (SMEs) in Istanbul, Turkey. The proposed hybrid methodology successfully ranked the alternatives and identified the best ERP system based on the information obtained from a number of SMEs participated in this study. (C) 2014 Elsevier Ltd. All rights reserved.