ERP Selection: Our Expert Opinion on the Questions that Matter Most
Selecting an ERP system is about more than just choosing software; it’s a strategic decision that must align with your business objectives and growth aspirations while enabling operational efficiency and process maturity. Given the broad range of products, hosting models and implementation partners to consider, not to mention the change impacts on your business, the selection process can be a daunting prospect.
In this blog article we address some of the most common questions about ERP selection from our clients. From defining your requirements and evaluating vendors to ensuring leadership alignment and managing business change, we offer practical insights from hundreds of successful ERP projects.
Q. What makes ERP selection so challenging?
ERP selection processes can be daunting. Organisations often struggle to define clear requirements, evaluate products and partners objectively, and maintain momentum throughout the journey.
The ERP market landscape itself adds complexity: a vast array of ERP products, many of which offer multiple implementation partners, hosting models, licensing options and support structures. Technical considerations like security, integration and the growing influence of AI further complicate the picture. It’s easy to feel overwhelmed – and that’s before the first demo has even been scheduled.
This is not a process that can be automated away. It requires thoughtful human input, cross-functional collaboration, and strategic leadership.
Q. How can we ensure that our ERP project aligns with our business strategy?
Before embarking on selection, consider your options carefully and ensure you have a well-defined business systems strategy in place – one that clearly articulates how technology will support your business goals, growth plans and operational priorities. Your ERP selection criteria should reflect your strategic objectives, not just functional wish-lists.
ERP projects are not “IT projects”. They require business sponsorship and involvement throughout, alongside IT leadership and input. Involving senior leadership early helps ensure alignment and commitment from the outset.
Q. What role does leadership play in ERP success?
Leadership alignment and readiness are critical to ERP success. Selection and implementation projects demand visible sponsorship, decision-making agility and a willingness to challenge legacy processes. When the leadership team is engaged and aligned, the rest of the organisation is far more likely to follow.
Your full leadership team needs to be bought in to the project from selection onwards, and on the same page about project objectives, budget, timelines, governance, resource commitment and the possibility of business disruption.
Q. How do we effectively manage change during ERP selection and implementation?
Change management is a thread that runs through the entire ERP journey, to pre-empt and address resistance and disruption. From the moment selection begins, organisations need to start preparing their people for what’s coming: new processes, new systems and new ways of working. This requires leadership, planning, experience and empathy.
During selection, change management means proactively engaging stakeholders, communicating the “why”, and building understanding of the project’s scope and implications. During implementation, it’s about maintaining that engagement, identifying and managing change impacts, and delivering communications, training and support at the right time.
Q. How should we define our ERP requirements?
Put simply, focus on what differentiates your business. While it’s tempting to document every requirement, this can dilute your focus and overwhelm vendors, and adds little value to the selection process.
Instead of focusing on features that are common to all ERP systems, prioritise those requirements that truly set your business apart. These differentiators are where ERP fit matters most. A targeted approach helps vendors to respond to your selection process more meaningfully and allows for clearer evaluation.
Q. Why does vendor engagement matter so much?
When it comes to ERP selection, you’re not just buying software – you’re preparing for a long-term relationship. Vendors that feel engaged and respected are more likely to tailor their responses thoughtfully, invest in the process and support your goals.
A structured selection process with clear communication and mutual respect go a long way in building rapport. It’s not about being sold to – it’s about building a partnership.
Q. How do we evaluate which ERP product and partner is right for us?
Evaluation should go beyond functionality. Your selection criteria should reflect your business priorities, and might include:
- Solution fit with your differentiator requirements;
- Vendor track record and industry experience;
- Total Cost of Ownership (TCO), including licences, implementation, support, and internal resource costs;
- Hosting and support models;
- Scalability and integration capabilities.
Note that while AI tools can help surface options, they can’t replace human judgment. ERP selection is a nuanced process that requires input from people that understand your business, your culture and your priorities, and can relate those to the available options.
This blog was written by Edward Abrahamson, Principal Consultant with Lumenia Consulting. If you're interested in exploring how Lumenia could support your ERP selection project, contact Edward directly.