10 Mistakes to Avoid When Choosing Your ERP Software Solution

10 Mistakes to Avoid When Choosing Your ERP Software Solution

People looking for new ERP systems or considering upgrades will usually create a business case to demonstrate how these changes will save their businesses money in the long term. Unfortunately, realizing those savings is not always straightforward. With reliable vendors, delivery partners, and well-defined business requirements, the new ERP may live up to cost-saving expectations.

Business owners face many options when selecting an enterprise resource planning (ERP) solution to meet their specific requirements, from hosted solutions and cloud SaaS offerings to industry-specific systems that may offer more specific functionality or features than others. As a result, software evaluation processes may often become overwhelming for them when considering the functionality and features of potential ERP systems.

Analysts have revealed that over 50% of enterprise resource planning (ERP) projects fail, and approximately half are challenging. These stats should make us take notice. Therefore, selecting an ERP software development company should be of utmost priority when embarking upon this journey.

10 Common Mistakes Businesses Make When Selecting ERP Software Solutions

Here are 10 of the most frequently made errors when choosing ERP solutions for their businesses.

Not Understanding the Exact ERP Needs of the Company

With an in-depth knowledge of an enterprise’s requirements and operations, selecting and configuring anERP solution correctly becomes easier. Obtaining insight into current processes and procedures, as well as future goals and objectives of an organization, is essential when determining what features should be included as necessities in an ERP solution and which elements can be left out altogether.

Businesses should consider these elements when selecting an ERP system that fulfills all their exact needs and requirements to maximize return on investment (both time and money) in its implementation. This way, businesses can select an ideal system.

Failing to Select an Industry-Specific Solution

Selecting software explicitly tailored to the industry can make all the difference for your business, and not choosing software with best practices in mind and all essential functions covered could cost your organization both money and efficiency. Failing to do this may result in costly errors and decreased productivity that undermine your success and could cost more time than money!

Before selecting an ERP solution, it is vitally important that you gain an understanding of its features and their ability to help achieve your business goals. Furthermore, considering implementation, maintenance, and training costs ensures you select an option with maximum value for your organization.

Failing to Select Scalable Software

One of the biggest mistakes businesses can make when selecting software is failing to choose something scalable as their business expands and their needs and requirements change, thus rendering its current solution obsolete and leading to potential inefficiency or losses for their organization.

The scalability of software development solutions is vitally important to organizations of all sizes. It ensures they can keep pace with their growth while remaining competitive within their industries, meeting customer demands, or taking advantage of new opportunities without disrupting or hindering progress. Therefore, it is of utmost importance to select software that will expand along with them as the organization grows.

Selecting an Inaccessible ERP System

It would be foolish for businesses to select an ERP system that cannot be reached from any device at any time – as with easy access, they may find themselves able to respond swiftly and take advantage of new opportunities quickly enough.

Without an available ERP system accessible at all times and places, businesses may face lost revenues, reduced customer satisfaction, and issues around data security and compliance that cannot be monitored in real time.

Failing to Choose Experienced Partners

Failing to select an experienced partner ecosystem for rapid deployment can enormously harm any project’s success. Without appropriate partners, ensuring an efficient and timely completion is almost impossible – leaving room for costly missteps that delay or even derail an endeavor altogether.

Businesses can leverage an experienced partner ecosystem’s experience and knowledge when selecting an implementation partner, as they understand all of its technologies and platforms to guarantee a swift deployment process and successful results on projects of any scale.

Not Involving Key People at the Outset

Businesses should ensure critical members from all departments are involved immediately. Yet, too often, companies need to assemble the appropriate team immediately, leading to delays during implementation because critical decision-makers and stakeholders don’t feel involved with it.

Implementation is one of the largest and costliest projects a business can undertake, so getting everyone onboard early is vital to ensure its success. Involve critical employees so you have a group working towards its success from day one – employees that care deeply about completing it successfully from its inception.

Not Allocating Enough Budget

Be wary when budgeting for your new ERP software solution; don’t cut expenses when budgeting it, as this decision shouldn’t be taken lightly and should reflect that in its budget estimate.

Leaders must budget enough money for an ERP system’s implementation maintenance costs and talent requirements to complete it successfully. When organizations try to accomplish too much with limited funds, failure occurs, and issues surface later on.

Training and staffing issues often accompany an ERP upgrade project, and companies quickly realize they must possess the internal expertise to carry it off alone. When this becomes apparent, they often turn to third-party IT services companies for help planning and implementing their new system.

Collecting Bad Data

ERP software aggregates information from across your organization, increasing operations visibility and helping make informed decisions. However, as with any technological solution, its performance depends heavily on its data sources – incomplete or inaccurate information won’t give an accurate picture of your business or provide value when making intelligent decisions. To safeguard holistic sources being integrated with this new system. Review existing references so as not to miss any gaps that might otherwise appear from reviewing data sources in current use, with contemporary sources being removed as you switch over.

Failing to identify areas requiring customization

ERP tends toward standardization rather than customization, though even organizations achieving an 80% standardization threshold still leave 20% of business processes that need customizing; at that point, companies must make hard choices between personalization or changing processes altogether.

Understanding these gaps enables organizations to make well-informed purchase decisions and avoid disappointment.

Misjudging Pros vs. Cons of On-Premise Vs. Cloud-Based

Organizations should conduct extensive due diligence before choosing between on-premise or cloud-based ERP solutions. Organizations should assess multiple factors when identifying an ERP solution suitable to their business – for instance, a cloud solution requires sufficient internet connectivity and subscription payments that offer remote employee access capabilities, among many other features that come in handy when choosing between them.

On-premise services require dedicated IT resources, updated servers, and more considerable initial upfront fees but may be the better fit for businesses that prefer hosting software on their servers. Before choosing, carefully consider both options to understand which will benefit your organization.


Selecting an ERP software solution will be challenging, which is no bad thing, but you must be honest about your expectations of disruption before beginning this project. As a team, all members must communicate openly and make a plan together for success; proper preparation will allow you to identify and overcome obstacles along the way.

When choosing an ERP software solution, businesses must prioritize scalability, security, and cost-effectiveness when choosing their ERP system to ensure optimal efficiency and productivity. Experienced partners can offer invaluable insight into best practices for rapid deployment and help identify any pitfalls during implementation.


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