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1. Table of Contents
Abstract
The purpose of this report is to recommend a selection process model for selecting one
ERP software vendor out of three possible vendors for AutoNexus. The report includes different
selection models and their advantages and disadvantages, the evaluation of the Software vendors
and their softwares in terms of the selection models and recommendation of the model that best
suits the situation.
Introduction
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2. Entity Resource Planning (ERP) systems make use of software application to integrate all
the internal and external information management, which spans an entire organization. It
manages the flow of data between important back-office functions such as inventory
management, sales, marketing, human resources, planning, manufacturing etc.
Companies seek ERP softwares to improve efficiency of their business and mend any
inefficiency and pinpoint them to improve any business process or if any complex issues exist in
the business environment. ERP software market has been growing at a very high rate since the
start of the 1990s. Organizations spend hundreds of thousands and even millions of dollars to
purchase ERP softwares. While IT expenditures continue to increase for many organizations and
somewhat is known about how these expenditures are made, and how and what they have to go
through to make the selection for an ERP software.
This study addresses the issue about what processes are followed by organizations to
select ERP software. AutoNexus is a company which provides complex solutions for the
automotive industry. Our study is about how to select ERP software for this company. What
process has to be followed to select the ERP software from three different vendors? This study
includes different models that can be followed to select the right ERP software by providing
details about the models and their advantages and disadvantages.
ERP System Selection Methodology
An ERP system selection methodology is a formal process for selecting an enterprise
resource planning (ERP) system.
It involves the following steps:
1. Structured Approach:
The first stage of the process is to follow a structured approach. All the
stakeholders of the enterprise presented practices that have to be performed.
Before the beginning of the selection process, everyone needs to know what the
requirements are and the criteria on which the vendor will be selected, so that no
conflicts arise in the future.
2. Focused Demonstrations:
The demonstrations given by the vendor should be relevant according to what the
business is. All the vendors should be treated equally for demonstrations so that
the vendors don’t find it unfair on them.

3. 3. Objective Decision Process:
The decision on how the ERP system is going to be calculated should be very
complex and should be agreed before viewing the potential systems.
4. Full involvement by all personnel:
All the people in the organization should participate in the following activities:
• Decision making process should be agreed in the project initiation phase
and everyone needs to be involved in it.
• Gathering requirements is an important part and participation is required
in this phase.
• Everyone in the company should attend the demonstrations given by the
vendor.
• The final selection after the short listing of a vendor should have
significant participation of all the people in the organization.
Software Selection Process Models
Nominal Group Technique
Nominal Group Technique (NGT) is used to make decisions in a group quickly. It uses the voting
system but takes into account every person’s opinion. It is a structured variation of small group
discussions, and prevents the domination of discussions by a single person and encourages all the
members to give their opinions, resulting in a set of solutions and recommendations.
The Nominal Group technique can be useful in a number of situations. It is more useful in
situations when amongst a group some are more vocal than others, when some need silence to
think well, when there is concern that few members might not participate because of being shy,
when more ideas are needed, when the issue might result in a conflict etc (Sample, 2008).
Normally the Nominal Group Technique involves the following five steps:
1. Introduction:
In the first step, the facilitator explains the procedure of NGT and the purpose of
the meeting to participants.
2. Silent Generation of Ideas:

4. The participants are not allowed to discuss the problem with each other, and given
ten minutes to think about all the ideas and recommendations that come to their
minds considering the problem and write it down on a sheet of paper, provided by
the facilitator.
3. Sharing Ideas:
In this stage, all the participants are asked to share the ideas that they had written
down in a round robin manner. This lasts about 15-30 minutes and all the ideas
and recommendations are noted down by the facilitator. During the process of
sharing ideas, the participants are allowed to write down any new ideas that come
to their minds after listening to others’ ideas and then share what they have
written down.
4. Group Discussion:
This step involves the discussion and lasts for about 45 minutes. All the
participants are allowed to discuss their ideas with each other, and seek
explanation of anything that they could not understand about each others’ ideas.
Criticism is not allowed in the discussion and ideas are not eliminated. New ideas
and recommendations are allowed after the group discussion.
5. Voting and Ranking:
This step requires all the participants to vote for the ideas and then all the ideas
are ranked according to the number of vote they receive. The discussion then
reaches a conclusion after the voting.
It might take more than one meeting to reach the conclusion, depending on the nature of the
problem being discussed.
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