Choosing a new ERP system – guide and checklist
Choosing a new ERP system is a major decision affecting many parts of the business. A good choice therefore does not start with the question “Which ERP system is best?” But with “Which ERP system best fits our business, processes and future needs?”
This guide covers the most important steps in evaluating, comparing and choosing a new ERP system. You can also download our more detailed checklist to use as a working document.
When is it time to change ERP systems?
The need for a new ERP system often arises when the business has changed faster than its systems. Common signs include:
- More manual work and increased use of Excel
- The same information is entered into multiple systems
- Integrations between systems are inadequate
- It is difficult to obtain current, reliable information
- Inventory, logistics or production processes require extensive manual work
- The existing ERP system limits new working methods or growth
- The company has outgrown a simpler accounting or ERP system
An ERP change should therefore be viewed as a business project, not just an IT project.
How to choose a new ERP system
Evaluating and choosing ERP systems raises many questions. In the video, Fredrik answers common questions, from requirements and organization to comparing systems and suppliers.
1. Start with the business, not the systems
Before comparing ERP systems, understand what you actually want to improve. Map your company's key processes and identify where current working methods or systems cause problems.
Questions to start with:
- Which processes work poorly today?
- Where does manual work or duplicate entry occur?
- What information does the business lack?
- Which processes need automation?
- What must the business be able to do in three to five years?
2. Assemble the right project and steering teams
Selecting a new ERP system usually affects much of the company. The project team should therefore represent the business, not just finance or IT.
Depending on the business, the team may include representatives from finance, sales, marketing, purchasing, inventory and logistics, production, projects, IT and management.
3. Define system and technical environment requirements
Once business needs are mapped, you can describe the functional and technical requirements the new ERP system must meet.
- Business processes the system must support
- User numbers and roles
- Integrations with CRM, e-commerce, inventory, transport, BI and other systems
- Reporting and decision support
- Security and data protection
- Multiple companies, countries, languages and currencies
- Cloud/SaaS or another hosting model
- Future scalability and development requirements
4. Make the requirements specification useful
A requirements specification is important, but more requirements do not automatically mean a better evaluation. Supplement functional requirements with real business scenarios.
For example, ask suppliers to show how the system handles a complete order workflow, production planning, traceability, project tracking or an international transaction, depending on your priorities.
5. Create a shortlist of systems and suppliers
Once requirements are clear, create an initial list of relevant ERP systems and suppliers. Larger evaluations can be divided into an RFI (Request for Information) followed by a more detailed RFP (Request for Proposal).
The aim is to progressively narrow many potential options to a few for in-depth evaluation.
6. Evaluate both the ERP system and the partner
A common mistake is focusing almost entirely on software. Choosing the partner is at least as important. The partner will often help with implementation, integrations, development, training, support and ongoing improvement for many years.
Evaluate areas such as:
- Experience with similar businesses
- Knowledge of your key processes
- Experience with the relevant ERP system
- Project methodology and consultant availability
- Integration expertise
- Support organization and long-term management
- Relevant, current customer references
7. Ask suppliers to demonstrate your processes
A generic product demonstration often says little about how well an ERP system fits your business. Give suppliers clear scenarios and ask them to demonstrate how their solution handles your key processes, problems and goals.
8. Evaluate implementation before choosing
The question is not only what the system can do, but how you will get there. Ask suppliers to describe project methodology, an initial project plan, responsibilities, data migration, integrations, testing, training, go-live and post-launch support.
9. Compare total cost, not just license prices
Compare the complete solution: software, implementation, integrations, customizations, training, data migration, hosting, support and future development.
10. Common mistakes when choosing ERP systems
- Starting with systems rather than business needs
- Trying to recreate the old system in the new one
- Comparing hundreds of functions without prioritization
- Underestimating the importance of the right partner
- Not allocating enough internal resources
- Considering only current requirements, not future needs
Which ERP system is best?
No ERP system is best for every company. The right choice depends on size, industry, processes, complexity, integration needs, international operations and future plans.
The choice should therefore be based on business needs first, the product second.
Questions and answers about choosing ERP systems
How long does choosing a new ERP system take?
It varies with company size, complexity and the number of alternatives. The key is to allow enough time for needs analysis and evaluation before implementation begins.
Do you need an RFI and RFP?
Not always. For larger or more complex ERP evaluations, an RFI and RFP can provide structure and make comparison easier. Smaller companies can often use a simpler process.
Should you choose the ERP system or supplier first?
Evaluate them together. A good system with the wrong partner can produce a poor project, while a capable partner helps the company realize the system's potential over time.
Who should participate in ERP selection?
Representatives from affected business areas should participate. Management should also be involved to give the project clear goals, priorities and authority.
Need help with evaluation?
Systemstöd works with ERP systems, integrations and business development, helping companies before, during and after ERP projects.
Read more about our ERP systems and services, or contact us to discuss your situation here.
Download the checklist
Get our detailed checklist to support evaluation, comparison and selection of a new ERP system.