ERP System Selection Model for Low Cost NGN Phone Company

Next generation network (NGN) phone company is handling telecommunication and media services in rural and sub-urban areas. In order to ease the replication process and to encourage entrepreneurship development through franchise package, ERP system needs to be deployed. Considering the widely available choices of ERP systems to date and the multi criteria decision making nature of selecting ERP, this research objected to search a model to effectively choose ERP system, thus maximizing values of implementing ERP and minimizing cost. This paper built on previous researches on ERP investment analysis and business model for village Phone Company to support entrepreneurial development in rural communities. Strategic alignment model and analytical network process were integrated to support alignment of ERP investment decision to business strategy. Strategic alignment model provides context to which ERP meets business strategy. Technology potential alignment perspective was used for Low Cost NGN Phone Company. This alignment perspective provides control hierarchy for the analytic network process. Analytic network process enables the model to incorporate multi-criteria decision making and derive priorities from complex structure. Three clusters with total of nine elements with dependence and feedback among the elements were used. Three ERP alternatives were compared, the open source ERP was found as the best alternative for Low Cost NGN Phone Company. Evaluation was based on the business strategy, IT strategy, and information system infrastructure and process.