An investigation of the decision process for selecting an ERP software: the case of ESC

Abstract

Decribes how ESC, a holding company for a gas and electric utility and non‐utility energy business, completed the acquisition of Oracle’s enterprise resource planning (ERP) solution (finance and related applications) at a cost of US$6.5 million in March 1997. From initiation to completion, the acquisition took approximately six months. 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 ESC for this acquisition was non‐typical of their normal procurement 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.