Choosing the right Enterprise Resource Planning (ERP) system can be a game-changer for your business—but only if done right. With dozens of ERP options on the market, the process to choose an ERP can be overwhelming. Having personally gone through this process, I’ve developed a tried-and-tested 10-step approach that ensures you don’t just pick an ERP system—you choose the right one.
In this guide, I’ll walk you through this process and also link you to expert perspectives from ERP Focus, the U.S. Chamber of Commerce, and NetSuite for a well-rounded view.
Step-by-Step process to choose an ERP
1. List Your Requirements
Document all your functional needs and problem areas. Every department should contribute to this list to ensure nothing critical is missed.
2. Form a Cross-Functional Team
Include at least one member from each department affected by the ERP. This ensures alignment and early buy-in.
3. Decide on a Budget
Set realistic expectations around both upfront and long-term costs including implementation, licensing, and training.
4. Reach Out to ERP Providers
Share your requirements with ERP vendors. Use industry references, LinkedIn, or Google searches to identify reliable providers.
5. Request Vendor Demos
Invite shortlisted vendors for demos. Ensure your entire team is present to evaluate usability and functionality.
6. Document Key Observations During Demos
Focus on:
- Pros and cons
- System scalability
- Hosting (cloud/on-premise)
- Vendor dependency
- Business continuity risks
- Pricing models
7. Shortlist Based on Fit
Narrow down to 2–3 vendors based on your observations and organizational priorities.
8. Conduct Vendor Due Diligence
Visit existing customers of the vendor. Ask about:
- Locations and years in use
- Implementation time
- Post-implementation support
- Query response times
- Upgrade history
9. Consolidate Your Findings
Document all the insights and bring your team together to assess the vendor suitability.
10. Make a Consensus-Based Decision
Finalize the vendor only when there is unanimous agreement from the core team. ERP implementation success is heavily dependent on team buy-in.
Why This Process Works
Unlike generic selection checklists, this process is grounded in real implementation experience. It emphasizes team alignment, vendor accountability, and customer feedback—three pillars often underplayed in other guides.
For comparison, check out:
- ERP Focus’s 10 Selection Criteria – great for evaluating ERP functionality.
- US Chamber’s Beginner Guide – helpful if you’re new to ERP.
- NetSuite’s Guide – good for understanding modern ERP capabilities.
Final Thoughts
ERP implementation is not just a tech upgrade—it’s a transformation journey. A structured, experience-driven approach ensures that your organization adopts a system that’s functional, scalable, and future-ready.