How to choose the right ERP. Learn the 5 key system evaluation criteria
ERP implementation isn't just about purchasing software, but also about truly transforming a company's operations. Only a system perfectly tailored to an organization's needs can become its operational "backbone"—streamlining daily operations, integrating data, and enabling managers to make decisions based on reliable information.
A thoughtful evaluation of available systems, based on key selection criteria, allows you to make a decision that will transform ERP into a true business partner. Statistics Poland (GUS) data shows that by 2025, 40.5% of Polish companies will already be using ERP [source: https://crn.pl/aktualnosci/wiecej-polskich-firm-ma-erp-spadl-udzial-crm-system-erp/?utm_source=chatgpt.com ]. These modern tools constitute a central platform for managing key areas of a company's operations. They automate processes, streamline data flow, provide new analytical capabilities, and are important elements in building effective business strategies.
What you should know about choosing ERP
For ERP systems to function properly, their selection cannot be haphazard, but well-considered. It should be preceded by an in-depth analysis of the organization's needs and an assessment based on key criteria that minimize implementation risk and increase the chances of project success. The most important factors to consider are:
- alignment with business processes,
- flexibility and scalability,
- security and legal compliance,
- total cost of ownership,
- quality of implementation and post-implementation support.
Omitting any of the above criteria significantly increases the risk of implementation failure and limits the system's potential as a tool that truly supports ongoing process management and business development.
The ERP decision from a strategic perspective
An ERP (Enterprise Resource Planning) system is an integrated IT platform that replaces a set of separate applications with a single central environment for managing data, processes, and information flow throughout the organization. As a result, the ERP system serves as the organization's operational hub, supporting key areas of activity – from finance and sales, through logistics and production, to projects and human capital management.
The right tool directly translates into operational efficiency, data consistency and reliability, compliance with legal regulations, speed of task execution and decision-making, easier cost control, and assessment of potential business potential and risk. Therefore, the decision to select an ERP system should not be viewed solely as a technological project, but as a crucial element of implementing a business strategy, influencing the company's scalability and competitiveness, as well as its long-term development.
Errors and omissions made during the ERP selection stage have long-term consequences. They can directly translate into decreased user trust and engagement, the need for costly modifications, data fragmentation, the use of manual workarounds and Excel spreadsheets, and often even the need to replace the system after just two or three years. Another common misconception is choosing a tool based on price or market popularity, rather than its alignment with actual business processes, organizational structure, and development strategy.
5 key system evaluation criteria
1. ERP system compatibility with business processes
System compatibility refers to the degree to which an ERP system reflects and effectively supports existing organizational processes, thereby minimizing the need for manual workarounds. Ideally, the tool should execute processes from start to finish, leaving no room for additional work on the part of employees. It is important that it does not impose rigid workflows and allows for the configuration of functionalities to the organizational processes and support its development.
The functional scope of the ERP system should also be assessed, as only full support for all key processes ensures comprehensive and effective management of the company's operations. This criterion covers all important areas of the company's operations – from finance and controlling, through sales and CRM, purchasing and logistics, to production, service provision, project management, and management reporting. This does not mean that the ERP system must be implemented with all modules and functionalities. A company can select the functional scope appropriate to its profile. For example, a service company does not require a manufacturing module, so the ERP should enable such selection.
2. Flexibility and scalability
An ERP system's scalability refers to its ability to grow with the organization, ensuring that its growing needs don't require costly modifications or replacement of the entire system. A good ERP system should seamlessly support an increasing number of users and data volumes, and also enable the integration of new companies, branches, and even markets. Its ability to adapt to changes in the business model and integrate with other tools used within the enterprise is also crucial. A strategic perspective, therefore, requires that the system not only supports current operations but also enables efficient response to the company's challenges and needs over the next few years, ensuring flexibility in the development of processes and organizational structures.
3. Data security and regulatory compliance
Data security in an ERP system is crucial to the functioning of the entire organization. It should encompass not only the personal data of employees and customers, but also financial information and all operational and strategic data crucial to daily operations and business decision-making. Ensuring full compliance with applicable laws, including GDPR, and implementing access control and user role management mechanisms are also crucial in this area.
Auditability features are also crucial, allowing for the tracking of changes made to databases and processes, as well as ensuring business continuity through backup systems and disaster recovery procedures. Only a comprehensive approach to security and regulatory compliance guarantees the protection of key information assets and minimizes operational and legal risks for the entire company.
4. Total cost of ownership (TCO)
A common decision-making mistake when choosing an ERP system is comparing available solutions solely based on purchase price, without considering other costs that, in practice, have the greatest impact on the actual profitability of the investment. A preliminary calculation should include the total cost of ownership (TCO), which encompasses all expenses incurred throughout the tool's lifecycle – from analysis and implementation, through ongoing maintenance, and further system development. This includes license or subscription costs, implementation and analytical work, integration with other systems, functional modifications, technical maintenance and service support, as well as organizational and operational costs such as user training.
5. Quality of implementation and post-implementation support
Implementing an ERP system is not a temporary technological initiative, but a comprehensive organizational transformation process. It requires a thorough understanding of the business's operations, its needs, challenges, and growth prospects, as well as the ability to translate the company's strategy into specific system solutions.
The quality of collaboration with an implementation partner largely determines the sustainability of implementation results and the real value of ERP for the business. Therefore, their experience in implementing projects for companies with similar business profiles, their level of industry expertise, and their proven project implementation methodology are particularly important in the decision-making process. Post-implementation support plays an equally important role – the availability of qualified consultants, response time, service coverage, and the ability to scale the tool according to changing business needs. Partnerships with software vendors are equally important, often requiring in-depth knowledge of the software and the team's qualifications required for proper system implementation and maintenance.
How to practically compare ERP systems
It's important to conduct an ERP system comparison in a structured manner that takes into account both the system's technological capabilities and the company's business needs. To facilitate this decision, a proven decision-making model consisting of five key steps can be used.
- Business Objective Analysis – Identifying the organization's strategic priorities and goals and determining how an ERP system can support their achievement.
- Process Mapping – A thorough analysis of key processes within the organization, allowing you to determine whether and how they function, and how a given ERP system can support or improve them.
- Defining Criteria and Weightings – Identifying specific aspects (features) important to the organization that will be evaluated when selecting an ERP, and then determining which of these are more important than others. For one company, security and regulatory compliance may be
- Scenario-Based Demo – A system presentation that allows you to see how the ERP performs in specific business situations, such as processing a customer order or reporting financial results. •
- Risk and cost assessment – a comprehensive analysis of potential threats, implementation and operating costs, and the projected business value of each system.
This approach allows you to not only compare available solutions on the market but also select an ERP system that will truly support your organization in achieving both daily processes and long-term goals. According to data available in the ERP Industry Statistics report prepared by ZIPDO Education Report 2025, the average return on investment for ERP projects is approximately 150%, with payback periods often ranging from 1 to 3 years. [source: https://gitnux.org/erp-industry-statistics ]. This only confirms that investing in ERP delivers a return.
How to increase the chances of a successful ERP implementation
A successful ERP implementation begins with the informed selection of both the right solution and an experienced implementation partner. Companies that approach this process systematically – using clearly defined evaluation criteria, analyzing business needs, and treating ERP as a strategic tool – significantly reduce the risk of errors and failures. With this approach, organizations can reap real benefits from their investment, such as:
- Better alignment with business processes – a properly selected system truly supports the company's operations, simplifies daily operations, minimizes the need for manual workarounds, and enables the smooth flow of information throughout the organization.
- Increased flexibility and scalability – ERP grows with the company and easily adapts to new needs and changes in the business environment.
- Data security and compliance – confidential information and data are protected and fully secured against leaks, and all processes comply with applicable regulations.
- Budget control – decisions made based on a complete cost picture minimize the risk of unforeseen expenses. Greater team efficiency – thanks to reduced repetitive operations and the need to work in multiple Excel spreadsheets.
- Better organization and control over company operations – the system integrates data from various areas, streamlines operational processes, and enables decision-making based on reliable, up-to-date information.
- Professional support – experienced partners ensure efficient implementation and long-term system maintenance.
According to data published in the ERP Industry Statistics report (ZIPDO Education, 2025), ERP improves data quality and information access, and currently, up to 70% of companies using ERP report improved data quality, which translates into operational and management processes (source: https://gitnux.org/erp-industry-statistics/).
FAQ
What are the most important criteria for choosing an ERP system?
The most important criteria are alignment with business processes, flexibility and scalability, data security and regulatory compliance, total cost of ownership (TCO), and the quality of implementation and post-implementation support. Considering all these aspects allows you to choose a system that truly supports the company's strategy and process efficiency.
Is it better to choose a "tailor-made" ERP system or a ready-made system?
Ready-made ERP systems are faster to implement, proven in practice, and often more cost-effective to maintain. However, they may require some functional modifications or adapting the company's internal processes to the system's operation. A "tailor-made" ERP system can better meet the specific requirements of various organizations, regardless of their size, industry, or needs. This solution provides full control over functionality, provides flexibility in development, and allows you to create a tool that closely supports the organization's strategy. Although it requires a larger investment and longer implementation time than a standard system, it can prove more practical. However, like any software, it must be updated, which forces the company to invest in a team of dedicated developers. How long does the ERP selection and implementation process take?
Choosing an ERP system typically takes several weeks to several months, while full implementation typically takes 6 to 18 months, depending on the company's size, process complexity, and functionality. Planning the stages and selecting an experienced implementation partner can significantly speed up the process and reduce the risk of delays.
Does a small or medium-sized company really need ERP?
Yes, even small and medium-sized businesses can reap significant benefits from ERP. The system allows for the integration of data from various departments, streamlines operational processes, improves cost control, and supports informed decision-making. In practice, ERP helps growing companies increase efficiency, avoid chaos in documents and Excel spreadsheets, and prepare the organization for further growth. Therefore, software vendors offer both ERP systems designed for large enterprises and programs tailored to the needs of medium-sized and small businesses.
What are the most common causes of unsuccessful ERP implementations?
The main reasons why ERP implementations can fail include a lack of alignment between the system and the company's actual processes, insufficient planning (or lack thereof), and poor needs analysis. Other notable factors include insufficient user engagement and selecting a system based solely on price or popularity. Furthermore, the risk increases when the implementation partner's experience and competence are ignored, and when an appropriate training and communication strategy is lacking within the organization.