ERP Selection Criteria Matrix

ERP Software Selection Criteria
Provide some experience with reviewing the wide range of selection criteria that typically surface during the initial phases of an ERP project and organizing them into a cohesive selection criteria matrix.

Tools and Input Material
– The American Productivity and Quality Center ( has provided a set of “typical” processes for organizations by industry. This may be a good starting point for the types of processes that will need to be supported by the new ERP system. Most organizations start with the accounting and finance areas and expand from there. The second most common area is either Manufacturing or Human Resources, depending on the nature of the enterprise.
– Microsoft Excel: Using the processes and area of evaluation, Excel is an appropriate tool for calculating a weighted score for each vendor and comparison across vendors.

Using MS Excel, create an enterprise resource planning (ERP) selection criteria matrix that will be utilized in your organization. Utilize your own experiences, the American Productivity and Quality Council (APQC) Process Classification Framework (PCF), and research about enterprise requirements to complete the assignment. The matrix should include categories of selection criteria including–at a minimum–technical architecture, finance & accounting, human resources, and management reporting. The criteria for selection will be weighted relative to the other criteria, and the spreadsheet will be completed to provide a relative ranking by criteria, category, and sum total.

Excellent selection criteria matrices will include several category areas beyond the minimum three listed above and will provide some additional analysis about each vendor, which may be useful during product and/or services negotiations.
1. Do the individual criteria for evaluation have realistic priority rankings?
2. Do the format and formulas within the spreadsheet function to allow for easy understanding about how each vendor ranked by category?
3. Is there an “executive overview” that provides a snapshot of the evaluations? Hint: consider using a radar or spider web chart.

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