Making a Multi-criteria Analysis Model for Choosing an ERP for SMEs in a KM World

There has never been such a rich offer in terms of ERP solutions that customers can choose from because the problem of knowledge has never been emphasized in the past. An ERP system in line with the company’s business is metamorphosed into a knowledge management tool that improves information transfer and generates “knowledge”. On the other hand, major decisions are rarely simple, and the best alternative can befall only after careful deliberation. In the present research we endeavor to provide a model of multiple-criteria decision-making (MCDM) in the selection of ERP applications. We illustrate and apply a MCDM technique, namely analytical hierarchy process (AHP) to assist SMEs to select the most appropriate ERP. We formulate an AHP decision model and apply it to a hypothetical case study to demonstrate the feasibility of the choice to select the most appropriate ERP software for a specific SME. We believe that our work could become a didactic source of inspiration for teaching decision making techniques to young people and students. The application of the proposed model indicates that it can be applied to improve decision-making processes and condense the time interval needed for ERP selection. Our model can be considered good practice and identified with the know-what and know-who component of a KM model.