Analysis of the decision process for selecting ERP software: the case of Keller Manufacturing

Abstract

Keller Manufacturing, a mid‐sized furniture manufacturer, completed the purchase of an enterprise resource planning (ERP) software solution in August of 1996 at a cost of US$1 million. From 12 individuals who participated on Keller’s acquisition team, the four principals were interviewed for this case. 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 Keller for this purchase was atypical 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.