An Integrated Intuitionistic Fuzzy MCDM Approach to Select Cloud-Based ERP System for SMEs
Abstract
ERP system is a software package that integrates and manages all the facets of the business and deeply influences the success of a business endeavor. The increasing competition in the market, rapidly changing demands, and increasing intricacy of business procedures induce enterprises to adopt ERP solutions. Adopting an ERP solution increases synchronization between business activities and reinforces managerial decision-making. However, it also involves a large investment, a significant amount of human resources and time, and risk of failure. Therefore, the selection of an ERP solution is a crucial decision for enterprises. To address this decision-making problem, we propose a four-stage multi-criteria decision-making approach in this paper. Three prevalent MCDM techniques, DEMATEL, IF-ANP, and IF-AHP, are used in different stages of the methodology to achieve better outcomes. The methodology incorporates the intuitionistic fuzzy sets to capture uncertainty and hesitancy involved in decision makers’ judgments. In addition, we develop a novel priority method to derive weights from the intuitionistic fuzzy preference relations. To validate the feasibility of the proposed approach, a case study is carried out on the selection of cloud-based ERP system for SMEs in the Chhattisgarh state of India, which indicates that the proposed four-stage approach effectively handles the ERP selection problem.
References
- 1. , An integrated fuzzy multi criteria group decision making approach for ERP system selection, Applied Soft Computing 38 (2016) 106–117. https://doi.org/10.1016/j.asoc.2015.09.037 Crossref, Web of Science, Google Scholar
- 2. , The future of ERP systems: Look backward before moving forward, in Conference Enterprise Information Systems, Vol. 5 (2012), pp. 21–30. https://doi.org/10.1016/j.protcy.2012.09.003 Crossref, Google Scholar
- 3. , Selecting “the best” ERP system for SMEs using a combination of ANP and Promethee methods, Expert Systems with Applications, 42(5) (2015) 2343–2352. https://doi.org/10.1016/j.eswa.2014.10.034 Crossref, Web of Science, Google Scholar
- 4. , Benefits and challenges of cloud ERP systems — A systematic literature review, Future Computing and Informatics Journal 1(1–2) (2016) 1–9. https://doi.org/10.1016/j.fcij.2017.03.003 Crossref, Google Scholar
- 5. , An integrated decision making approach for ERP system selection, Expert Systems with Applications 36 (2009) 660–667. https://doi.org/10.1016/j.eswa.2007.09.016 Crossref, Web of Science, Google Scholar
- 6. , Intuitionistic fuzzy sets, Fuzzy Sets and Systems 20(1) (1986) 87–96. https://doi.org/10.1016/S0165-0114(86)80034-3 Crossref, Web of Science, Google Scholar
- 7. , An analysis of DEMATEL approaches for criteria interaction handling within ANP, Expert Systems with Applications 46 (2016) 346–366. https://doi.org/10.1016/j.eswa.2015.10.041 Crossref, Web of Science, Google Scholar
- 8. , Intuitionistic fuzzy analytic hierarchy process, IEEE Transactions on Fuzzy Systems 22(4) (2013) 749–761. https://doi.org/10.1109/TFUZZ.2013.2272585 Crossref, Web of Science, Google Scholar
- 9. , Intuitionistic fuzzy analytic network process, IEEE Transactions on Fuzzy Systems 26(5) (2018) 2578–2590. https://doi.org/10.1109/TFUZZ.2017.2788881 Crossref, Web of Science, Google Scholar
- 10. , Isomorphic multiplicative transitivity for intuitionistic and interval-valued fuzzy preference relations and its application in deriving their priority vectors, IEEE Transactions on Fuzzy Systems 26(1) (2018) 193–202. https://doi.org/10.1109/TFUZZ.2016.2646749 Crossref, Web of Science, Google Scholar
- 11. , The optimization ordering model for intuitionistic fuzzy preference relations with utility functions, Knowledge-Based Systems 162(July) (2018) 174–184. https://doi.org/10.1016/j.knosys.2018.07.012 Crossref, Web of Science, Google Scholar
- 12. , Additively consistent interval-valued intuitionistic fuzzy preference relations and their application to group decision making. Informatics 9(10) (2018). https://doi.org/10.3390/info9100260 Google Scholar
- 13. , A three-phase method for group decision making with interval-valued intuitionistic fuzzy preference relations, IEEE Transactions on Fuzzy Systems 26(2) (2018) 998–1010. https://doi.org/10.1109/TFUZZ.2017.2701324 Crossref, Web of Science, Google Scholar
- 14. , A new combined IF-DEMATEL and IF-ANP approach for CRM partner evaluation, International Journal of Production Economics 191(May) (2017) 194–206. https://doi.org/10.1016/j.ijpe.2017.05.012 Crossref, Web of Science, Google Scholar
- 15. , Scope of cloud computing for SMEs in India, Journal of Computing 2(5) (2010) 144–149. Google Scholar
- 16. , Factors that influence selection of cloud ERP for Indian SMEs: An empirical study, Ssrn (2015). https://doi.org/10.2139/ssrn.2707480 Crossref, Google Scholar
- 17. , Indian SMEs perspective for election of ERP in cloud, International Journal of Management and Information Management 22(1) (2013) 85–94. https://doi.org/10.1093/mutage/18.1.59 Google Scholar
- 18. , ERP system integrated with cloud services for small and medium business in India, International Journal of Advanced Research in Computer Science and Software Engineering 4(12) (2014) 541–544. http://ijarcsse.com/Before_August_2017/docs/papers/Volume_4/12_December2014/V4I12-0347.pdf. Google Scholar
- 19. , An architectural framework for the implementation of ERP using cloud computing in SMEs: A literature survey, International Journal of Science and Research 6(2) (2017) 11–18. https://www.ijsr.net/archive/v6i2/ART2017513.pdf. Google Scholar
- 20. , A literature review and classification of enterprise software selection approaches, International Journal of Information Technology and Decision Making 8(2) (2009) 217–238. Link, Web of Science, Google Scholar
- 21. , A review of applications of analytic hierarchy process in operations management, International Journal of Production Economics 138(2) (2012) 215–241. https://doi.org/10.1016/j.ijpe.2012.03.036 Crossref, Web of Science, Google Scholar
- 22. , An AHP-based approach to ERP system selection, International Journal of Production Economics 96(1) (2005) 47–62. https://doi.org/https://doi.org/10.1016/j.ijpe.2004.03.004 Crossref, Web of Science, Google Scholar
- 23. , Fuzzy AHP-based decision support system for selecting ERP systems in textile industry by using balanced scorecard, Expert Systems with Applications 36(5) (2009) 8900–8909. https://doi.org/10.1016/j.eswa.2008.11.046 Crossref, Web of Science, Google Scholar
- 24. , Prioritization of enterprise resource planning systems criteria: Focusing on construction industry, International Journal of Production Economics 139(1) (2012) 340–350, https://doi.org/10.1016/j.ijpe.2012.05.025 Crossref, Web of Science, Google Scholar
- 25. , A multi criteria group decision making approach for collaborative software selection problem, Journal of Intelligent and Fuzzy Systems 26(1) (2014) 37–47. https://doi.org/10.3233/IFS-120713 Crossref, Web of Science, Google Scholar
- 26. , An intelligent approach to ERP software selection through fuzzy ANP, International Journal of Production Economics 45(10) (2007) 2169–2194. https://doi.org/10.1080/00207540600724849 Crossref, Web of Science, Google Scholar
- 27. , Using the ANP approach in selecting and benchmarking ERP systems. Benchmarking An International Journal 15(5) (2008) 630–649. https://doi.org/10.1108/14635770810903196 Crossref, Google Scholar
- 28. , GAHPSort: A new group multi-criteria decision method for sorting a large number of the cloud-based ERP solutions, Computers and Industrial Engineering 92–93 (2017) 12–24. https://doi.org/10.1016/j.compind.2017.06.007 Crossref, Web of Science, Google Scholar
- 29. , A model for selecting an ERP system based on linguistic information processing, Information Systems 32(7) (2007) 1005–1017. https://doi.org/https://doi.org/10.1016/j.is.2006.10.005 Crossref, Web of Science, Google Scholar
- 30. , An integrated decision support system dealing with qualitative and quantitative objectives for enterprise software selection, Expert Systems with Applications 36(3) (2009) 5272–5283. https://doi.org/https://doi.org/10.1016/j.eswa.2008.06.070 Crossref, Web of Science, Google Scholar
- 31. , Fuzzy quality function deployment based methodology for acquiring enterprise software selection requirements, Expert Systems with Applications 37(4) (2010) 3415–3426. https://doi.org/https://doi.org/10.1016/j.eswa.2009.10.006 Crossref, Web of Science, Google Scholar
- 32. , QoS-based cloud ERP selection model for SMEs, Journal of Telecommunication, Electronic and Computer Engineering 9(2–4) (2018) 21–25. http://journal.utem.edu.my/index.php/jtec/article/view/2353 Google Scholar
- 33. , A robust MCDM approach for ERP system selection under uncertain environment based on worst case scenario, Journal of Enterprise Information Management 31(3) (2018) 405–425. https://doi.org/https://doi.org/10.1108/JEIM-12-2017-0175 Crossref, Web of Science, Google Scholar
- 34. , An ERP model for supplier selection in electronics industry, Expert Systems with Applications 38(3) (2011) 1760–1765. https://doi.org/https://doi.org/10.1016/j.eswa.2010.07.102 Crossref, Web of Science, Google Scholar
- 35. , A hybrid MCDM methodology for ERP selection problem with interacting criteria, Decision Support Systems 54(1) (2012) 206–214, https://doi.org/10.1016/j.dss.2012.05.006 Crossref, Web of Science, Google Scholar
- 36. , Development of a hybrid methodology for ERP system selection: The case of Turkish Airlines, Decision Support Systems 66(Suppl. C) (2014) 82–92, https://doi.org/10.1016/j.dss.2014.06.011 Crossref, Web of Science, Google Scholar
- 37. , An ERP software selection process with using artificial neural network based on analytic network process approach, Expert Systems with Applications 36(5) (2009) 9214–9222. https://doi.org/https://doi.org/10.1016/j.eswa.2008.12.022 Crossref, Web of Science, Google Scholar
- 38. , A hybrid MCDM approach for solving the ERP system selection problem with application to steel industry, International Journal of Enterprise Information Systems 8(3) (2012) 54–73. https://doi.org/10.4018/jeis.2012070104 Crossref, Google Scholar
- 39. , A fuzzy ANP-based GRA approach to evaluate ERP packages, International Journal of Enterprise Information Systems 15(1) (2019) 45–68. https://doi.org/10.4018/IJEIS.2019010103 Crossref, Web of Science, Google Scholar
- 40. , Fuzzy sets, Information Control 8(3) (1965) 338–353. https://doi.org/10.1016/S0019-9958(65)90241-X Crossref, Google Scholar
- 41. , Group decision making with intuitionistic fuzzy preference relations, Knowledge-Based Systems 70 (2014) 33–43. https://doi.org/10.1016/j.knosys.2014.04.001 Crossref, Web of Science, Google Scholar
- 42. , A new vector valued similarity measure for intuitionistic fuzzy sets based on OWA operators, Iran Journal of Fuzzy Systems 16(3) (2019) 113–126. https://doi.org/10.22111/ijfs.2019.4649 Web of Science, Google Scholar
- 43. , Intuitionistic preference relations and their application in group decision making, Information Sciences (Ny) 177(11) (2007) 2363–2379. https://doi.org/10.1016/j.ins.2006.12.019 Crossref, Web of Science, Google Scholar
- 44. , Intuitionistic fuzzy aggregation operators, IEEE Transactions on Fuzzy Systems 15(6) (2007) 1179–1187. https://doi.org/10.1109/TFUZZ.2006.890678 Crossref, Web of Science, Google Scholar
- 45. , Evaluating intertwined effects in e-learning programs: A novel hybrid MCDM model based on factor analysis and DEMATEL, Expert Systems with Applications 32(4) (2007) 1028–1044. https://doi.org/https://doi.org/10.1016/j.eswa.2006.02.004 Crossref, Web of Science, Google Scholar
- 46. , Fuzzy DEMATEL method for developing supplier selection criteria, Expert Systems with Applications 38(3) (2011) 1850–1858. https://doi.org/10.1016/j.eswa.2010.07.114 Crossref, Web of Science, Google Scholar
- 47. , A DEMATEL-based completion method for incomplete pairwise comparison matrix in AHP, Annals of Operations Research 271(2) (2018) 1045–1066. https://doi.org/10.1007/s10479-018-2769-3 Crossref, Web of Science, Google Scholar
- 48. , A DEMATEL method in identifying key success factors of hospital service quality, Knowledge-Based Systems 23(3) (2010) 277–282. https://doi.org/10.1016/j.knosys.2010.01.013 Crossref, Web of Science, Google Scholar
- 49. , Airline safety measurement using a hybrid model, Journal of Air Transport Management 13(4) (2007) 243–249. https://doi.org/https://doi.org/10.1016/j.jairtraman.2007.04.008 Crossref, Web of Science, Google Scholar
- 50. , The Analytic Hierarchy Process: Planning, Priority Setting, Resource Allocation (McGraw-Hill, New York, 1980). https://www.mendeley.com/catalogue/analytic-hierarchy-process-planning-priority-setting-resources-allocation/. Google Scholar
- 51. , Decision Making with Dependence and Feedback: The Analytic Network Process: The Organization and Prioritization of Complexity, 2nd ed. (RWS Publications, 2001). https://books.google.co.in/books?id=MGpaAAAAYAAJ. Google Scholar
- 52. , Decision making with the analytic hierarchy process, International Journal of Services Sciences 1(1) (2008) 83–98. https://doi.org/10.1504/IJSSci.2008.01759 Crossref, Google Scholar
- 53. , Pairwise comparison matrix in multiple criteria decision making, Technological and Economic Development of Economy 22(5) (2016) 738–765. https://doi.org/10.3846/20294913.2016.1210694 Crossref, Web of Science, Google Scholar
- 54. , A cosine maximization method for the priority vector derivation in AHP, European Journal of Operational Research 235(1) (2014) 225–232. https://doi.org/10.1016/j.ejor.2013.10.019 Crossref, Web of Science, Google Scholar
- 55. , Project selection by constrained fuzzy AHP, Fuzzy Optimization and Decision Making 3(1) (2004) 39–62. https://doi.org/10.1023/B:FODM.0000013071.63614.3d Crossref, Google Scholar
- 56. , Applications of the extent analysis method on fuzzy AHP, Eur J. Oper Res. 95(3) (1996) 649–655. https://doi.org/10.1016/0377-2217(95)00300-2 Crossref, Web of Science, Google Scholar
- 57. , Enhancing data consistency in decision matrix: Adapting Hadamard model to mitigate judgment contradiction, European Journal of Operational Research 236(1) (2014) 261–271. https://doi.org/10.1016/j.ejor.2013.11.035 Crossref, Web of Science, Google Scholar
- 58. , An ERP software selection process with using artificial neural network based on analytic network process approach, Expert Systems with Application 36(5) (2009) 9214–9222. https://doi.org/10.1016/j.eswa.2008.12.022 Crossref, Web of Science, Google Scholar
- 59. , The use of grey relational analysis in solving multiple attribute decision-making problems, Computers and Industrial Engineering 55(1) (2008) 80–93. https://doi.org/10.1016/j.cie.2007.12.002 Crossref, Web of Science, Google Scholar
- 60. , Priorities of intuitionistic fuzzy preference relation based on multiplicative consistency, IEEE Transactions on Fuzzy Systems 22 (2015) 1669–1681. https://doi.org/10.1109/TFUZZ.2014.2302495 Crossref, Web of Science, Google Scholar
- 61. , Integrate inconsistent and heterogeneous data based on user feedback, International Journal of Intelligent Computing and Cybernetics 8(2) (2015) 187–203. https://doi.org/10.1108/IJICC-04-2014-0013 Crossref, Google Scholar
- 62. Min of MSME — Govt of India. MSME — Annual Report 2015–16. MSME- Annu Rep 2015–16. 53(9) (2016) 1689–1699, doi: 10.1017/CBO9781107415324.004. Google Scholar
- 63. , The Delphi method as a research tool: An example, design considerations and applications, Information and Management Elsevier 42(1) (2004) 15–29. Crossref, Web of Science, Google Scholar
- 64. , Selection among ERP outsourcing alternatives using a fuzzy multi-criteria decision making methodology, Internationl Journal of Production Research 48(2) (2010) 547–566. https://doi.org/10.1080/00207540903175095 Crossref, Web of Science, Google Scholar
- 65. , An AHP-based approach to ERP system selection, International Journal of Production Economics 96(1) (2005) 47–62. https://doi.org/10.1016/j.ijpe.2004.03.004 Crossref, Web of Science, Google Scholar
- 66. , Selection of an ERP system for a construction firm in Taiwan: A case study, Automation in Construction 16(6) (2007) 787–796. https://doi.org/10.1016/j.autcon.2007.02.001 Crossref, Web of Science, Google Scholar
- 67. , A multi-attribute decision-making model for construction enterprise resource planning system selection, International Journal of Construction Education and Research 12(1) (2016) 66–79. https://doi.org/10.1080/15578771.2015.1015755 Crossref, Google Scholar
- 68. , Exploring determinants of cloud-based enterprise resource planning (ERP) selection and adoption: A qualitative study in the Indian education sector, Journal of Information Technology Case and Application Research 18(1) (2016) 11–36. https://doi.org/10.1080/15228053.2016.1160733 Crossref, Google Scholar
- 69. , Enterprise information systems project implementation: A case study of ERP in Rolls-Royce, International Journal of Production Economics 87(3) (2004) 251–266. https://doi.org/10.1016/j.ijpe.2003.10.004 Crossref, Web of Science, Google Scholar
- 70. , The analytic hierarchy and analytic network measurement processes: Applications to decisions under risk, European Journal of Pure and Applied Mathematics 1(1) (2008) 122–196. https://doi.org/10.1007/0-387-23081-5_9 Crossref, Google Scholar
- 71. , Ranking irregularities when evaluating alternatives by using some ELECTRE methods, Omega 36(1) (2008) 45–63. https://doi.org/https://doi.org/10.1016/j.omega.2005.12.003 Crossref, Web of Science, Google Scholar
- 72. , Evaluation of classification algorithms using MCDM and rank correlation, International Journal of Information Technology and Decision Making 11(1) (2012) 197–225. https://doi.org/10.1142/S0219622012500095 Link, Web of Science, Google Scholar
- 73. , Evaluation of clustering algorithms for financial risk analysis using MCDM methods, Information Sciences (Ny), 275 (2014) 1–12. https://doi.org/https://doi.org/10.1016/j.ins.2014.02.137 Crossref, Web of Science, Google Scholar
- 74. , A group decision making model for integrating heterogeneous information, IEEE Transactions on Systems, Man, and Cybernetics: Systems 48(6) (2018) 982–992. https://doi.org/10.1109/TSMC.2016.2627050 Crossref, Web of Science, Google Scholar
- 75. , Soft consensus cost models for group decision making and economic interpretations, European Journal of Operational Research 277(3) (2019) 964–980. https://doi.org/10.1016/j.ejor.2019.03.009 Crossref, Web of Science, Google Scholar
- 76. , An interval-valued Pythagorean prioritized operator-based game theoretical framework with its applications in multicriteria group decision making, Neural Computing and Applications (2019). https://doi.org/10.1007/s00521-019-04014-1 Crossref, Web of Science, Google Scholar