Choosing an ERP system is one of the biggest business decisions any organization will make, even though it’s often treated like a technology purchase. Many of the most costly ERP mistakes happen before the software comparisons even begin.
Businesses often start the ERP selection process by comparing features, pricing, and vendors. Only later do they define their business goals, document their processes, and involve the right stakeholders.
By then, they’re making one of their biggest organizational decisions without the foundation needed for long-term success.
As Gartner asserts, “Aligning ERP initiatives to strategic goals is a top predictor of success.”
One pattern I’ve noticed from working with wineries, agriculture, manufacturing, and other industries is that the software is rarely the first obstacle. More often, it’s the assumptions made before the project even begins.
This ERP Buying Guide is the first article in a three-part series. Here I’ll debunk some of the most common myths that derail an ERP software evaluation before it even begins. We’ll explore why business process mapping matters, how ERP vendor evaluation should go beyond product demonstrations, and why successful ERP implementation planning starts long before the actual implementation.
Whether you’re considering Microsoft Dynamics 365 Business Central or another modern ERP platform, this guide will help you ask the right questions before comparing software.
ERP buying guide: What every business should know before buying ERP software
What should every business know before buying ERP software? The most important work happens long before vendors are evaluated or software is compared.
Organizations should first understand their operational challenges, define clear business goals, document their current processes, and involve the people who will ultimately use the system.
Choosing an ERP system isn’t just a technology decision—it’s a business transformation initiative.
One of the biggest misconceptions I see is that the ERP selection process should begin when vendors start demonstrating their software. In reality, it should start much earlier, with a clear understanding of how the company operates today and where it needs to go tomorrow.
I’ve found that teams often get excited about dashboards, automation, and new features before they’ve agreed on the problems they’re trying to solve. Without that foundation, even the best ERP software evaluation can turn into a feature comparison instead of a conversation about organizational outcomes.
That’s why I encourage leadership teams to step back before requesting demonstrations or proposals:
- Spend time on business process mapping.
- Talk with the departments that will use the system every day.
- Identify what’s working well, what’s creating unnecessary friction, and what success should look like a year or two down the road.
Microsoft’s implementation guidance recommends defining business objectives, identifying key stakeholders, and establishing success metrics before implementation begins. These are the same principles that help create a more successful ERP project from the outset.
That preparation also leads to more meaningful ERP vendor evaluation conversations.
Instead of asking, “What can your software do?” you’re asking, “How will this solution help us achieve the business outcomes we’ve already defined?”
That’s a much better place to begin—and it creates a stronger foundation for successful ERP implementation planning long before the actual implementation begins.
ERP software won’t fix broken processes
Can ERP software fix broken business processes? Not by itself. ERP software can improve efficiency, automate repetitive tasks, and provide greater visibility, but it can’t correct inefficient workflows that haven’t been addressed first.
One misconception I hear regularly is that a new ERP system will solve operational problems simply because it’s newer or has more features.
A new ERP system won’t hide inefficient processes. If anything, it makes them easier to see.
I’ve seen companies replace spreadsheets with automated workflows, only to discover that the approval process itself was unnecessarily complicated. Others expected better reporting but found that inconsistent data and unclear responsibilities were still producing inconsistent results.
The software was doing exactly what it was designed to do. The process simply needed to be improved first.
That’s why I encourage leaders to treat an ERP project as an opportunity to rethink how work gets done. Ask why a process exists, whether every approval still adds value, and whether the workflow supports where the business needs to go… not just where it’s been.
Improving processes before implementation doesn’t just make the technology more effective. It also helps employees understand the reason behind the change, making adoption easier, and creating a stronger foundation for long-term success.
ERP selection should be a business decision—not just an IT decision
When clients ask me who should be involved in choosing an ERP system, my answer is always the same: More people than you might think.
Successful ERP selection requires collaboration across the organization.
IT and finance each bring important perspectives, but so do operations, supply chain, sales, customer service, and executive leadership. Every group should help define the business requirements.
That cross-functional perspective leads to better software decisions, stronger user adoption, and fewer implementation surprises because the solution reflects how the company truly operates.
Too often, that doesn’t happen. Organizations create problems later by limiting those early conversations to just a few people. But every department sees the same business processes through a different lens, and those perspectives often reveal opportunities that would otherwise be missed.
When operations, customer service, sales, warehouse teams, production managers, and finance all contribute to the conversation, ERP vendor evaluation becomes much more productive. Instead of debating individual features, the conversation shifts to how the software will support the company as a whole.
Choosing an ERP system isn’t just about selecting the right software… it’s about asking the right questions before the evaluation even begins.
When organizations understand their goals, improve their processes, and involve the right people from the start, they’re much more likely to choose a solution that supports long-term success.
In the next article, I’ll take a closer look at one of the biggest decisions companies face after selecting an ERP system: when standard functionality is enough—and when customization truly adds value. Then, to close out the series, I’ll explore why ERP implementation budgets so often exceed expectations and what businesses can do to avoid the most common cost overruns.
Every organization has different goals, challenges, and priorities. If you’re beginning your ERP selection process, let’s talk about where your business is today—and where you want it to go.
About Mike Stallmann
Meet Mike Stallmann, Director of Product and Business Development, Co-founder at Oztera, and the original “Chief Geek Juggler.” With decades of ERP innovation under his belt and over 200 successful deployments, Mike’s involvement with business technology is extensive.
From wineries to agriculture and beyond, Mike and Oztera specialize in solving complex, industry-specific challenges. If you’re looking to leverage technology for growth and efficiency, our experience is your secret weapon.
For insights and actionable advice, connect with Mike on LinkedIn and discover what tech-driven business transformation looks like.