Erp Framework

European Journal of Information Systems (2001) 10, 204–215

 2001 Operational Research Society Ltd. All rights reserved 0960-085X/01 $15.00
www.palgrave-journals.com/ejis

A framework for the ex-ante evaluation of ERP software
CJ Stefanou*
Technological Educational Institution (TEI) of Thessaloniki, Sindos, Thessaloniki, Greece
It has been widely reported that a large number of ERPimplementations 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 strategicimpact 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 estimationof 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. European Journal of Information Systems (2001) 10,
204–215.

Introduction
The decade of 1990, as far as the business information
systems are concerned, has beencharacterised by the
implementation of Enterprise Resource Planning (ERP)
systems in a significant number of enterprises worldwide. ERP systems are currently the prevailing form of
business computing for many large organisations in the
private and public sector (Gable, 1998). The reasons for
adopting ERP can be technical, such as the desire to
reduce mainframe system operating costs and/orbusiness, such as the necessity to acquire software, which
can support a certain production mode (Markus &
Tanis, 2000).
Although a large number of papers have been recently
published addressing ERP issues (see Esteves & Pastor,
2001), there is limited research concerning ERP software
evaluation. An extensive part of the academic literature
deals exclusively with ERP implementation issues ignoringthe way decisions are taken and their appropriateness
regarding the acquisition of ERP systems. The purpose
of this paper is to identify key issues involved in the
ex-ante evaluation of ERP software and emphasize the
importance of selecting the right ERP software for an
organization.
Software selection based on ease of use, usefulness
and involvement of end users, as it has been suggestedby Montazemi et al (1996), is no longer enough for criti*Correspondence: CJ Stefanou, Technological Educational Institution
(TEI) of Thessaloniki, PO Box 14561, 54101 Sindos, Thessaloniki,
Greece
E-mail: kstef acc.teithe.gr

cal systems such as ERP. Brown et al (2000) identified
several business and IT related factors that influence the
purchase of ERP systems. It has been also argued thatsoftware procurement is not a transparent process and
mission-critical software is vital in achieving both operational and strategic goals and support decision-making
(Rosenthal & Salzman, 1990). This paper argues that,
given the strategic nature of ERP and the major organisational, technological and behavioural impact of ERP, a
broad perspective of ERP systems adoption and evaluation isneeded. Technological, business and organisational contexts should be studied in a unified way
encouraging the examination of interrelated key acquisition, implementation and maintenance factors. Due to
the complexity of ERP software, and the intangible nature of most costs and benefits, the evaluation has to be
both quantitative and qualitative and requires a multidimensional and a multiple...