What are the Key Steps for Selecting the Right ERP Software?

Working on a daily basis with a wide spectrum of companies, I believe there are a set of fundamental considerations for ERP selection that hold true regardless of company size—large enterprises with thousands of employees across the globe will face more complexities compared to smaller organizations—industry, and business model.


The first step is to conduct a holistic process review across the business. This analysis will help you determine urgent pain points, bottlenecks hampering productivity, and general areas of improvement. Depending on the resources at your disposal, my recommendation is to involve an external consultant to help you arrive at a truly subjective and unbiased conclusion.

Only when you understand the problem can you start scanning the market for a solution. However, you choose to approach this phase—whether a selection consultant is brought in or whether you rely on in-house expertise—I would strongly advise the following criteria are met:

  • A software
    vendor that is willing and able to engage with the different stakeholders in
    your business to assess the potential value that can be derived from the
    investment along with the total cost of ownership. Working towards a shared
    goal will dramatically increase the likelihood of achieving success. I
    recommend asking questions about the projected time-to-value of any ERP
  • The
    software itself should be evaluated to ensure an ideal technical fit, delivered
    in a solution that is easy to use. Key questions to pose are: How quickly can
    the software be deployed? How easily can the software be configured to support
    my unique needs, now and in the future? Is the solution scalable to accommodate
    future growth? How well suited is the solution to handle the national and/or
    international laws and restrictions that regulate my industry? How easily does
    the solution integrate with third-party, best-of-breed systems?
  • The
    software vendor should be able to produce multiple reference customers that are
    willing to help you validate the claims in the steps above. These reference
    customers should ideally be active in your industry and therefore be able to
    give you an earnest assessment of the solution’s industry fit.

When the selection has been made, it is
crucial to work with your software provider and implementation partner, if one
has been selected, to establish a realistic implementation project that all
parties can commit to.

Ultimately, it will be transparency and
frank communication that will determine the outcome of your ERP project. Just
like in any complex transformation project, there will likely be compromises
and unexpected developments to deal with. These eventualities will be much
easier to handle if you are working towards a shared vision of success with a
vendor that you trust.

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