ERP Acquisition Planning: A Critical Dimension for Making the Right Choice Jacques Verville, Ramaraj Palanisamy, Christine Bernadas and Alannah Halingten Organisations that invest in new ERP software packages are making a big commitment in terms of both time and money, especially given the complexity of such systems and the risk that their implementation will bring unforeseen problems. This paper looks at the process of planning in the acquisition of ERP systems, basing its findings in an extensive study of four organisations that have gone through the planning process. Six activities are identified and examined: project team formation, requirements definition, establishment of evaluation and selection criteria, marketplace analysis, choice of acquisition strategy, and anticipated acquisition issues. By planning the acquisition systematically and thoroughly, organisations can substantially increase the likelihood that they will identify ERP software and vendors that genuinely meet their needs. Ó 2007 Elsevier Ltd. All rights reserved. Introduction Enterprise Resource Planning (ERP) systems offer great promise to businesses wanting to con- solidate and integrate the many elements that comprise business practice. Essentially, they are online, interactive information systems used for enterprise integration; they support cross-functional pro- cesses using a common database that can integrate across multiple functional areas by focusing on processes, rather than individual functions. 1 ERP systems consist of customisable software, which integrates the complete range of business processes and functions in order to present a holistic view of the business. 2 An ERP is defined as a suite of integrated software applications that link back-office and front-office operations and their internal and external supply chains. One typical description is of a ‘packaged business software system that enables a company to manage the effi- cient and effective use of resources by providing a total, integrated solution for the organisation information-processing needs’. 3 The architecture for ERP systems builds upon one database, one Long Range Planning 40 (2007) 45e63 http://www.elsevier.com/locate/lrp 0024-6301/$ - see front matter Ó 2007 Elsevier Ltd. All rights reserved. doi:10.1016/j.lrp.2007.02.002