CHAPTER 5

ERP System Selection

Installing ERP systems would seem to be a simple matter. After all, the software, while expensive, has been thoroughly tested by many customers. However, ERP implementations are consistently reported by industry sources such as Gartner Group to have failure rates in excess of 60 percent. A business case should be a key part of the process of selecting the form of ERP software for an organization. This chapter will demonstrate the fundamental means of financial analysis and show how other methods can be used to consider other factors describing expected project performance. Cost-benefit analysis seeks to identify accurate measures of benefits and costs in monetary terms and uses the ratio of benefits to costs. Costs ...

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