Information Technology Reference
In-Depth Information
Chapter 20
ERP System Selection Criteria:
The Case of Companies in Slovenia
Andreja Pucihar
University of Maribor, Slovenia
Gregor Lenart
University of Maribor, Slovenia
Frantisek Sudzina
Copenhagen Business School, Denmark
AbstrAct
The chapter proposes a possible model of criteria for ERP system selection. The proposed model consists
of four groups of ERP system selection criteria: the ERP systems benefits criteria, the system quality
criteria, the vendor related criteria and the ERP system package criteria. The data was collected in
companies in Slovenia. Research results have confirmed internal consistency of ERP selection criteria in
each group. For each criterion the importance is evaluated by small, medium-sized and large companies.
Beside that also company size, implemented information strategy, representation of the IT department
on the board level in the company and turnover impact on importance of each criterion is evaluated
and presented. The model presented in this chapter could be useful for ERP system providers to better
understand companies' needs and to provide systems tailored for individual needs of the company. The
model could also be useful for companies considering ERP system implementation to avoid high costs
of failed implementations.
introduction
costs of operation in the entire supply chain. It is
crucial that companies shorten throughput times,
drastically reduce inventories, expand product
choice, provide more reliable delivery dates and
better customer service, improve quality, and
efficiently coordinate global demand, supply,
and production (Umble et al., 2003; Jafari et al.,
2006). All this is not possible without usage of
information technology.
Nowadays, companies face a rapidly changing
business environment with increased competition
and raised customer expectations in expanded
markets. This situation increases the pressure
on companies to change their existing business
practices and procedures to achieve lower total
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