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.