  In past years ERP Systems have become one of the main components within the
corporate IT structure. Several problems exist around implementing and
operating these systems within companies. In the literature one can find
several studies about the problems arising during the implementation of an ERP
system. The main problem areas are around the complexity of ERP systems. One
vision to overcome some of these problems is federated ERP. Federated ERP
systems are built of components from different vendors, which are distributed
within a network. All components act as one single ERP system from the user
perspective. The decreased complexity of such a system would require lower
installation and maintenance cost. Additional, only the components which are
needed to cover the company's business processes would be used. Several
theories around this concept exist, but a feasibility assessment of developing
a federated ERP system has not been done yet. Based on a literary analysis of
existing methods for feasibility studies, this paper is applying strategic
planning concepts and referential data from the traditional ERP development to
provide a first assessment of the overall feasibility of developing a platform
for federated ERP systems. An analytical hierarchical approach is used to
define effort and effect related criteria and their domain values. The
assessment as the criteria is done in comparison to the development of a
classical ERP system. Using the developed criteria, a net present value
calculation is done. The calculation of the net present value is done on an
overall, not company specific level. In order to estimate the weighted average
cost of capital, the values from successful software companies are used as a
baseline. Additional potential risks and obstacles are identified for further
clarification.
