ERP selection: How to find the right system

Key Takeaway: ERP selection follows a structured process: gather requirements from departments, create a requirements specification, evaluate vendors via longlist/shortlist, run test installations with your own data, and compare TCO (Total Cost of Ownership) over 5 years — not just the purchase price.

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Short: The decision for a new enterprise resource planning system (ERP) is one of the strategically important ones that a medium-sized company can make.

The decision for a new enterprise resource planning system (ERP) is one of the strategically important ones that a medium-sized company can make.

A suitable ERP system not only improves business processes, but also increases efficiency and competitiveness. But the market is large and the selection complex.

So how do you find the right system for your company? This post will take you through the decisive steps.

Why a careful ERP selection is crucial

Short: An ERP system is the digital core of a company.

An ERP system is the digital core of a company. It integrates and controls all business processes from accounting to goods management to human resources.

A wrong decision can have far-reaching consequences here: from high costs to frustrated employees to inefficient processes.

A well thought-out ERP introduction in the middle class is therefore not a luxury, but a need for sustainable success.

Phase 1: Demand analysis and requirement definition

Short: Before looking for a provider, you need to know your own needs carefully.

Before looking for a provider, you need to know your own needs carefully. A detailed request analysis is the basis for the entire selection process.

Analyze internal processes

Start with an inventory of your current processes. Which processes work well? Where are there bottlenecks or recurring problems? Please include employees from all relevant departments.

These know the daily challenges best and can provide valuable input.

Define future requirements

A new ERP system is an investment in the future. So think not only of the status quo, but also of the strategic objectives of your company.

Are you planning an expansion abroad? Would you like to open up new business areas? The future system must be flexible and scalable enough to grow with your company.

Priority requirements

Not all wishes are equally important. Create a request catalog and prioritize the individual points. What are absolute must criteria (K.o. criteria) and what are “Nice-to-have” functions?

This prioritization will help you to objectively compare the offers offered by the different suppliers.

Phase 2: Market analysis and provider selection

Short: With a clear request profile, you can now tell the market.

With a clear request profile, you can now tell the market. This is about creating a shortlist of potential providers.

Supplier research

Use different sources for your research: trade fairs, industry associations, online portals and recommendations from your network. Make sure the providers have experience in your industry.

An ERP system for a production plant has different requirements than one for a service company.

Creating a Longlist and Sh

References and further reading

Short: The following independent references complement the topics in this article:

The following independent references complement the topics in this article:

• Bitkom – German digital industry association
• German Federal Office for Information Security (BSI)
• European Commission – Digital strategy
• MDN Web Docs (Mozilla)
• W3C – World Wide Web Consortium