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ERP & Enterprise

How to Select the Right ERP: A Practical Guide for Enterprises

Fatima Zaidi March 20, 2024 15 min read

Choosing the wrong ERP is a multi-year, multi-million mistake that is very hard to reverse. This guide gives you a rigorous framework for evaluation — including the questions most vendors hope you never ask.

The True Cost of an ERP Decision

The licence cost is typically 10–20% of the total cost of an ERP project. Implementation services, training, integration development, data migration, ongoing support and productivity loss during transition make up the rest. Getting the selection decision wrong compounds all of these costs.

The Five Non-Negotiables

  • Fit for your specific industry processes — generic ERP requires expensive customisation
  • Integration capability with your existing systems (CRM, e-commerce, payment processors)
  • Total cost of ownership over 5 years, not just year-one licence
  • Vendor financial stability and product roadmap commitment
  • Reference customers of similar size and complexity in your industry

Questions Vendors Hope You Never Ask

Ask every ERP vendor: "Can we speak to a client who switched away from your product in the last 3 years?" The answer is illuminating.

Ask about data portability — what does export look like if you need to move? Ask about customisation: does it survive version upgrades? Ask about the implementation partner ecosystem: is there real competition, or is the vendor the only competent implementer?

The Evaluation Process That Works

We recommend a structured evaluation across three phases: requirements definition (6 weeks), vendor shortlisting and demonstration (8 weeks), and reference checks and contract negotiation (4 weeks). Rushing any phase creates regret.

Tags: ERPEnterprise TechDigital TransformationProcurement
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