Holistic ERP selection methodology for SMEs

Empirical research has shown that selecting an inappropriate system is a major reason for ERP implementation failures. Review of literature has identified a need for methodologies that assist organisations, and particularly SMEs, in the ERP system and vendor selection process. This paper therefore proposes an ERP selection methodology that has a broad, holistic focus by simultaneously developing, defining and aligning an SME’s strategies, and business and IT infrastructure and processes with the ERP evaluation and selection process. The methodology consists of a conceptual framework, a process model and guidelines for the ERP selection process. The final output for the organisation is a choice of ERP system and vendor that ensures strategic fit and functional integration in the organisation. The methodology was successfully developed and implemented in a Norwegian SME.