Method of selection of ERP systems using multi-criterial optimization models

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Authors:

M.A.Demydenko, Cand. Sc. (Tech.), Assoc. Prof., orcid.org/0000-0001-6298-2079, National Mining University, Dnipro, Ukraine, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract:

Purpose. To develop theoretical and practical recommendations for a scientifically based selection of Enterprise Resource Planning (ERP) systems and their composition with the use of economic and mathematical modeling for businesses in Ukraine.

Methodology. The theoretical and methodological basis of the study is fundamental principles of modern economic theory, the scientific work of scientists. During the research, the following methods were used: mathematical modeling (to solve the problem of multicriterial optimization consisting in finding optimal variants of the introduction of automated information systems for the management of industrial enterprises); graphic (for visual presentation of research results); analytical and structural (by optimizing the choice of ERP by analytical hierarchical approach).

Findings. A complex approach with the use of modeling is proposed to find such an ERP that meets and harmonizes the requirements of the company under conditions of uncertainty. A system of methodological guidelines adapted and suitable for use in practice is developed.

Originality. A optimal multi-criteria selection method of the ERP system under conditions of uncertainty is developed, which allows the company to select ERP systems according to their own optimality criteria.

Practical value. The results of the study will allow companies to reduce the costs of implementing ERP systems, the proposed method and algorithm can be implemented in applications for computers and mobile devices to automate the process of choosing an ERP system and its composition.

References.

1. Moutaz, Haddara, 2018, ERP systems selection in multinational enterprises: a practical guide. International Journal of Information Systems and Project Management, 6(1), pр. 43‒57.

2. Jun-Der Leu and Larry Jung-Hsing Lee, 2017. Enterprise resource planning (ERP) implementation using the value engineering methodology and Six Sigma tools. Enterprise Information Systems, 11(8), pp. 1243‒1261. DOI: 10.1080/17517575.2016.1215537.

3. Dey, P. K., Clegg, B. and Cheffi, W., 2013. Risk management in enterprise resource planning implementation: a new risk assessment framework, Production Planning & Control, 24, pp. 1‒14.

4. Kanchana, V. and Sri Ranjini, S., 2018. Investigation and Study of Vital Factors in Selection, Implementation and Satisfaction of ERP in Small and Medium Scale Industries, International Journal of Electrical and Computer Engineering , 8(2), pp. 1150‒1155.

5. Cristina López and Alessio Ishizaka, 2017. GAHPSort: A new group multi-criteria decision method for sorting a large number of the cloud-based ERP solutions. New York, Elsevier.

6. Haddara, M. and Constantini, A., 2017. ERP II is Dead-Long Live CRM. Procedia Computer Science, 121, pp. 950‒959.

7. Sumner, Mary, 2018. ERP Project Retrospectives—55 Enterprise Systems: Evaluating Project Success, Lessons Learned, and Business Outcomes. Midwest Association for Information Systems, Proceedings [online], 51. Available at: <http://aisel.aisnet.org/mwais2018/51> [Accessed 19 July 2018].

8. Hustad, E., Haddara, M. and Kalvenes, B., 2016. ERP and Organizational Misfits: An ERP Customization Journey, Procedia Computer Science, 100, pp. 429‒439.

9. Hamdan Mohammed Al-Sabri, Majed Al-Mashari and Azeddine Chikh, 2018. A comparative study and evaluation of ERP reference models in the context of ERP IT-driven implementation: SAP ERP as a case study. Business Process Management Journal, 24(4), pp. 943‒964. DOI: 10.1108/BPMJ-07-2016-0139.

10. Bahssas, D. M., AlBar, A. M. and Hoque, M. R., 2015. Enterprise Resource Planning (ERP) Systems: Design, Trends and Deployment. The International Technology Management Review, 5, pp. 72–81.

11. Khaleel, Y., Abuhamdah, A., Sara, M. A. and Al-Tamimi, B., 2016. Components and Analysis Method of Enterprise Resource Planning Requirements in Small and Medium Enterprises. International Journal of Electrical and Computer Engineering, 6, pp. 682–689.

12. Taran, I. and Klymenko, I., 2014. Innovative mathematical tools for benchmarking transmissions of transport vehicles. Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu, 4, pp. 76‒81.

13. Torbacki, W., 2017. Dematel method in ERP systems for TSL branch. Transport Problems, 12/4, pp. 27‒36.

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Tags: methodmodeloptimizationcriterionERPexpert analysisSAP

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ISSN (print) 2071-2227,
ISSN (online) 2223-2362.
Journal was registered by Ministry of Justice of Ukraine.
Registration number КВ No.17742-6592PR dated April 27, 2011.

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