A process approach for selecting ERP software: the case of Omega airlines

Abstract

Omega Airlines, an international air carrier, provides air transportation services for passengers and cargo both to domestic and international arenas. Omega Airline's purchased People Soft's ERP solution (finance, human resources, and payroll applications) for the sum of US$86 million. The ERP acquisition process that Omega Airline's went through took approximately 9 months and was completed by the summer of 1996. The structure of the acquisition process that emerged from the data revealed six distinctive iterative, recursive and inter-related processes that, together, form a complex web of activity and tasks for the acquisition of ERP software. These activities and tasks are described and analyzed as a function of the six processes. The ERP acquisition process developed by Omega Airlines for this purchase was a typical of their normal purchasing practices and proved to be a significant learning experience for the entire organization. This case provides a useful illustration of 'good practice' and sets forth the framework for the ERP acquisition process.