Navigating ERP Selection: 7 Strategies for Success

Two coworkers discovering 7 essential strategies for success for the ERP selection process.

Navigate the ERP selection process with confidence. Discover 7 essential strategies for success.

Selecting the right enterprise resource planning (ERP) system is a crucial decision that can significantly affect a company’s operations and lead to success or costly setbacks. With numerous options and vendors available, the process can quickly become overwhelming, making it difficult to know where to start.

Following are seven essential steps for business leaders to consider when navigating ERP selection, along with practical insights to simplify the process.

Insights in your inbox

Never miss an opportunity to grow and improve your business. Stay on top of business and industry news with insights from Crowe specialists.

Subscribe now

A bullseye outlines the importance of defining business needs and objectives.

1. Define business needs and objectives

Before exploring ERP options, it’s important to outline current and future business needs. Key areas to consider include:

Operational efficiency. Improving operations across the board starts with identifying opportunities to streamline processes.
Data analytics and reporting. Establishing the necessary level of visibility into operations can reveal areas that need improvement.
Scalability. Evaluating a system’s ability to support business growth can help the organization expand appropriately.
User experience. To better support the workforce, organizations should assess the potential effect on employee productivity and workflow.

Clearly defining these requirements can help narrow ERP options to those that best fit the business.

A graph with an arrow going up reminds you to focus on critical functions and strategic requirements.

2. Focus on critical functional and strategic requirements

Prioritizing essential functional and strategic needs when selecting an ERP system rather than getting bogged down by extensive feature lists is critical. Key areas to focus on include:

Core functionalities. Organizations should look for ERP tools and features that meet industry standards and address specific business needs.
Customization capabilities. Before making a decision, it’s important to consider the system’s ability to be tailored to specific preferences.
Integration requirements. Understanding how well the ERP system can work with existing applications is also crucial.

Concentrating on these critical areas helps avoid unnecessary details and supports more strategic decision-making.

A flag on top of a mountain mimics the need for companies to understand the ERP market landscape.

3. Understand the ERP market landscape

The ERP market ranges from broad, flexible solutions to industry-specific applications. When exploring options, organizations should assess each system’s capabilities, history, and growth potential. Key considerations include:

Support and long-term viability. Prioritizing systems with strong customer support and a proven track record can result in a better outcome.
Scalability. Whether the system can grow with the business should be a top consideration.
Vendor reputation and stability. To avoid issues from vendor changes or discontinued support, decision-makers should evaluate vendor reputation and financial stability.

Carefully considering these factors can help organizations select ERP systems that meet current needs while supporting future growth and adaptation.

Two people shaking hands portraying ERP vendor relationships.

4. Evaluate and shortlist ERP vendors

Once potential ERP systems are identified, the next step is to evaluate and shortlist vendors. Key considerations include:

Industry knowledge. Decision-makers should evaluate a vendor’s experience to confirm it understands specific industry needs and challenges.
Implementation support. To achieve a smooth deployment and long-term success, organizations should assess the quality of the implementation team.
Support and training. To maintain adequate assistance with system implementation and adoption, organizations should review support and training offerings.

Using project management and evaluation tools can streamline the ERP selection process by focusing on vendors that best fit business needs. Choosing the right implementation team is crucial, as selecting the right software can contribute to successful integration and consistent ERP performance.

Hand holds a bag of money, reminding companies to assess the total cost of ownership.

5. Assess total cost of ownership

Evaluating the total cost of ownership (TCO) is vital in ERP selection. Key elements to consider include:

Initial costs. Decision-makers should account for software licensing (module and user pricing), implementation, and associated fees for third-party tools and integrations.
Ongoing expenses. Costs for maintenance, support, and periodic upgrades can be substantial, so ongoing expenses need to be taken into consideration.
Long-term financial implications. Organizations should anticipate future costs like additional modules or scalability options to avoid unexpected financial burdens.

A detailed TCO analysis clarifies the financial commitment and aids in making decisions that align with budget constraints and long-term financial planning.

A person giving a presentation, signifying the comprehensive support companies rely on for their implementation guide.

6. Rely on implementation guidance

Comprehensive support during ERP selection and implementation is often as significant as the ERP platform itself. Key aspects of this support include:

Structured vendor demos. Before making a decision, organizations should request presentations focused on specific and essential business requirements.
Proposal review. Decision-makers should conduct thorough reviews to verify that vendor proposals align with business needs.
Implementation oversight. Ongoing support is critical for a successful ERP implementation.

Effective support can enhance the implementation experience and ease the transition to the new system.

A hand holding a shopping bag showing the final selection and resulting plan of implementation

7. Make the final selection and plan for implementation

The final step is to make an informed decision based on all gathered recommendations and data. Key actions include:

Data review and analysis. Decision-makers should consolidate and review data from the selection process to align with the company’s strategic objectives and operational needs.
Consultation services. Organizations can use insights from industry consultants to validate the final choice, providing an additional layer of confidence in the decision.
Implementation planning. Developing a detailed implementation plan outlining timelines, key milestones, and resource allocation can help facilitate a smooth transition to the new ERP system.

Following these steps, businesses can confidently select an ERP solution that meets current needs and supports future growth.

Make the right ERP choice with the right ERP support

At Crowe, we recognize the critical importance of a successful ERP selection and implementation. Choosing the right system is just the first step, and many important decisions follow as the implementation process unfolds.

If you’d like to review your ERP options together or ask any questions, our team of ERP specialists is here to help.

Feel free to reach out to our team today.

Matt Keegan

Principal, Information Technology Advisory Leader

+1 317 208 1963

Profile

mail 

Previous Post Next Post

Streamline systems, gain insights, and boost efficiency with support that stays with you

NetSuite specialists at Crowe are ready to help you apply automations, explore industry solutions, and remove hurdles for continued growth.

Explore services